New York sued the Trump administration for withholding more than $73.5 million in highway funding over the state’s decision not to revoke commercial driver licenses given to illegal aliens.
New York Attorney General Letitia James and Gov. Kathy Hochul, both Democrats, said the legal challenge Friday seeks to reverse the decision by the Transportation Department last week to cancel the funding after the state refused the federal government’s demands to revoke certain driver’s licenses.
New York said the loss of funding puts its residents at risk. The Transportation Department said in December an audit found New York had been routinely issuing commercial driver licenses to foreign drivers illegally.
The Transportation Department did not immediately comment to Reuters.
“Once again, New York is facing devastating federal cuts for nothing more than political payback,” Hochul said. “Ripping away money that goes toward critical safety upgrades on our roads is reckless and it is illegal.”
The Transportation Department has also threatened to annually withhold an additional $147 million in future years. New York said revoking these licenses “would disrupt key industries that rely on commercial drivers and could lead to bus driver shortages affecting schools and families.”
New York, California and other states have repeatedly sued the Trump administration over withholding transportation funds and accused it of political motivations.
In March, a judge ordered the Transportation Department to unfreeze about $3 billion in funding for rail projects in Chicago after it canceled at least $9.5 million in reimbursements since October from grants previously approved during the Biden administration.
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