California Risks Losing $160 Million in Federal Funds Over Licenses

Transportation Secretary Sean Duffy has accused California Governor Gavin Newsom of dishonesty regarding the state’s compliance with federal requirements. Duffy stated that California faces the potential loss of nearly $160 million in federal funds if it does not revoke foreign trucker licenses by the original deadline of January 5, 2024. This assertion comes in light of a recent lawsuit filed by a group of immigrant truckers against the California Department of Motor Vehicles (DMV), alleging violations of workers’ rights.

The lawsuit, filed just days before Christmas, claims that the DMV’s decision to revoke thousands of unlawfully issued licenses places the livelihoods of approximately 20,000 immigrant drivers at risk. The DMV had previously admitted to issuing around 17,000 non-domiciled commercial driver’s licenses (CDLs) to migrant drivers unlawfully. Following the backlash, the DMV announced an extension of the deadline to March 6, 2024, allowing additional time for a resolution.

In response to the DMV’s announcement, Duffy expressed his dissatisfaction on social media, stating, “Gavin Newsom is lying. The deadline to revoke illegally issued, unvetted foreign trucker licenses is still January 5. California does NOT have an ‘extension’ to keep breaking the law and putting Americans at risk on the roads.” He emphasized that failure to meet the deadline would prompt action from the U.S. Department of Transportation (USDOT), including potential cuts to federal funding.

Newsom’s office did not provide a response to requests for comment on the matter. The implications of the lawsuit extend beyond financial concerns; plaintiffs argue that revoking the licenses would lead to severe financial and emotional hardships for the drivers and their families.

The DMV’s recent press release indicated that the extension aims to facilitate a solution that enables drivers to continue working in their essential roles. Steve Gordon, the California DMV Director, highlighted the importance of commercial drivers to the economy, stating, “Our supply chains don’t move, and our communities don’t stay connected without them.” He expressed hope that collaboration with federal authorities would restore confidence in California’s licensing processes.

In October, Duffy warned that California could risk losing $40 million in federal funds if it failed to comply with the USDOT’s English-language requirements for truck drivers. This warning followed a tragic accident involving an illegal immigrant truck driver who had received a CDL from California, resulting in the deaths of three individuals.

As the situation continues to develop, the stakes remain high for both the state and the immigrant drivers affected by these licensing issues. The outcome of this legal battle may have far-reaching consequences for the state’s economy, the livelihoods of thousands of drivers, and federal funding allocations.