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Confirmed—the U.S. Department of Transportation is putting key New York funds at risk over its commercial licenses

by Sandra V
December 18, 2025
Confirmed—the U.S. Department of Transportation is putting key New York funds at risk over its commercial licenses

Confirmed—the U.S. Department of Transportation is putting key New York funds at risk over its commercial licenses

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What’s going on with commercial licenses? There’s a conflict between New York and the U.S. federal government, and it has to do with immigration policies, and the federal funding for highways. If you think you need to have a background knowledge to understand this issue, that’s not true. Here’s the conflict in very simple terms, so let’s find out what is happening.

What’s the main issue?

There is a disagreement between New York and the federal government about how the state sends and manages commercial driver licenses. In case you don’t know what we are talking about, a commercial driver license is a special permission to be able to drive trucks, buses, and other heavy commercial vehicles.

These licenses are important because commercial vehicles drive throughout the entire country and this can affect many people’s safety. The thing is that the conflict is more about federal money New York receives to fix and improve its roads.

The federal government

The U.S. Department of Transportation warned New York that it could withhold $73 million in federal highway funding. This money normally supports:

  • Road maintenance.
  • Safety improvements.
  • Infrastructure projects across the state.

The federal government stated that New York doesn’t fully meet the commercial driver licenses rules. Basically, Federal officials believe that states must share complete and accurate driver license data, since this information is necessary for national safety oversight. So, incomplete data makes it harder to track risks and enforce safety standards.

Immigration

The main aspect about this issue is a New York law that allows some noncitizens, including people without permanent legal status, to obtain commercial driver licenses. To this, New York officials say that:

  • Allowing these licenses improves road safety.
  • Drivers are required to pass tests and receive training.
  • Licensed drivers are safer than unlicensed drivers.

The federal government doesn’t directly confirm that New York can’t give these licenses, but it doubts the way in which the data from registers is shared.

New York

Governor Kathy Hochul and other state transportation leaders totally disagree with the federal actions. They argue that:

  • Denying licenses could lead to more untrained drivers on the road.
  • This would increase danger rather than reduce it.
  • All commercial drivers in New York must still pass background checks and driving tests.

Officials from the New York State Department of Motor Vehicles say they:

  • Continue to cooperate with federal agencies.
  • Must also protect personal data under state privacy laws.

They claim that some federal demands could conflict with privacy protections required by New York law.

Why the money is at risk

Well, New York already faces high infrastructure costs and the pressure to modernize roads and old bridges. So, transportation experts warn that losing federal funds could delay or cancel important projects and affect rural and low-income communities the most. Why? Because these communities depend a lot on federal money to keep their roads safe.

What happens now?

The federal government pointed out that New York still has time to fix the previously mentioned issues. However, there is no clear deadline, and no schedule has been announced to solve the conflict. In the meantime, the transportation budget for the state remains in a very uncertain situation.

To sum up

For now, the outcome remains uncertain. What happens next will determine whether New York keeps its federal highway funding or must change how it manages commercial license records. Following this issue closely can help people better understand how technical transportation rules can lead to significant real-world consequences.

Were you aware of this situation? Let’s hope they all reach an agreement because this is a really important issue that matters all of us.

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