Overview
- Transportation Secretary Sean Duffy announced the penalty after rejecting California’s plan to extend the cancellations to March following a class‑action suit by advocacy groups.
- FMCSA’s audit reported more than a quarter of sampled non‑domiciled CDLs were unlawful, including licenses extending beyond holders’ federal work‑authorization dates.
- California’s DMV said it disagrees with the decision and argues the state has complied with regulations and that losing the funds threatens road maintenance and public safety.
- The $160 million withholding comes on top of $40 million previously pulled over alleged failures to enforce trucker English‑proficiency rules.
- Immigrant drivers and legal groups warn mass cancellations could trigger job losses and strain freight operations, while related federal rule changes remain on hold under a court order.