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California Loses $160M in Federal Highway Funding Over Driver's License Dispute

MarketDash Editorial Team
1 day ago
Transportation Secretary Sean Duffy made good on his threats, pulling nearly $160 million in federal highway funding from California after the state missed a deadline to revoke commercial driver's licenses issued to undocumented drivers.

Transportation Secretary Sean Duffy just followed through on weeks of threats, announcing Wednesday that the Department of Transportation is pulling nearly $160 million in federal funding from California. The reason? The state missed a deadline to revoke commercial driver's licenses issued to undocumented drivers.

The Showdown Goes Public

Duffy didn't hold back in announcing the decision. Taking to social media platform X on Wednesday, he declared "It's RECKONING DAY for Gavin Newsom," arguing that the DOT's demands were "simple" and straightforward. California Governor Gavin Newsom disagreed, apparently.

"Gavin refused. So now I am pulling nearly $160 MILLION from California," Duffy wrote, emphasizing that under President Donald Trump's administration, federal dollars wouldn't "fund this CHARADE."

Where the Money Was Going

The Federal Motor Carrier Safety Administration is withdrawing the funds "via the National Highway Performance Program and Surface Transportation Block Grant," according to the DOT's official statement. That's money California typically uses for highway improvements, bridge and tunnel projects, pedestrian and bicycle infrastructure, and transit capital projects.

Here's the thing: according to the DOT, California had actually agreed back in November to revoke 17,000 CDLs. The state just didn't meet the January 5 deadline to actually do it.

How We Got Here

This isn't the first time Duffy has threatened to pull funding from California over this issue. Governor Newsom previously dismissed Duffy's allegations as a "sad and pathetic attempt" to spread false information. The two have been trading barbs for weeks.

Duffy isn't limiting his pressure to California, either. He's also threatened Governor Tim Walz (D-Minn.) with over $30 million in federal funding cuts for similar CDL issues.

The entire dispute gained urgency after a tragic accident in Florida. Harjinder Singh, an undocumented foreign commercial driver with a California-issued CDL, made an illegal U-turn on a Florida highway that resulted in three fatalities. The incident drew sharp criticism from GOP lawmakers and became a focal point in the debate over state compliance with federal licensing standards.

Back to Stock Market News

California Loses $160M in Federal Highway Funding Over Driver's License Dispute

MarketDash Editorial Team
1 day ago
Transportation Secretary Sean Duffy made good on his threats, pulling nearly $160 million in federal highway funding from California after the state missed a deadline to revoke commercial driver's licenses issued to undocumented drivers.

Transportation Secretary Sean Duffy just followed through on weeks of threats, announcing Wednesday that the Department of Transportation is pulling nearly $160 million in federal funding from California. The reason? The state missed a deadline to revoke commercial driver's licenses issued to undocumented drivers.

The Showdown Goes Public

Duffy didn't hold back in announcing the decision. Taking to social media platform X on Wednesday, he declared "It's RECKONING DAY for Gavin Newsom," arguing that the DOT's demands were "simple" and straightforward. California Governor Gavin Newsom disagreed, apparently.

"Gavin refused. So now I am pulling nearly $160 MILLION from California," Duffy wrote, emphasizing that under President Donald Trump's administration, federal dollars wouldn't "fund this CHARADE."

Where the Money Was Going

The Federal Motor Carrier Safety Administration is withdrawing the funds "via the National Highway Performance Program and Surface Transportation Block Grant," according to the DOT's official statement. That's money California typically uses for highway improvements, bridge and tunnel projects, pedestrian and bicycle infrastructure, and transit capital projects.

Here's the thing: according to the DOT, California had actually agreed back in November to revoke 17,000 CDLs. The state just didn't meet the January 5 deadline to actually do it.

How We Got Here

This isn't the first time Duffy has threatened to pull funding from California over this issue. Governor Newsom previously dismissed Duffy's allegations as a "sad and pathetic attempt" to spread false information. The two have been trading barbs for weeks.

Duffy isn't limiting his pressure to California, either. He's also threatened Governor Tim Walz (D-Minn.) with over $30 million in federal funding cuts for similar CDL issues.

The entire dispute gained urgency after a tragic accident in Florida. Harjinder Singh, an undocumented foreign commercial driver with a California-issued CDL, made an illegal U-turn on a Florida highway that resulted in three fatalities. The incident drew sharp criticism from GOP lawmakers and became a focal point in the debate over state compliance with federal licensing standards.