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DOT Withholds $160 Million From California Over Delay Revoking 17,000 Commercial Driver’s Licenses

The state postponed cancellations to March after a class-action suit by immigrant advocates.

FILE - A truck departs from a Port of Oakland shipping terminal on Nov. 10, 2021, in Oakland, Calif. (AP Photo/Noah Berger, File)
FILE - Transportation Secretary Sean Duffy speaks during a news conference at the Department of Transportation in Washington, Dec. 12, 2025. (AP Photo/Mark Schiefelbein, File)
U.S. and California flags fly together on a flag pole in Oceanside, California, U.S., October 24,  2017.     REUTERS/Mike Blake

Overview

  • Federal officials said California missed a mutually agreed Jan. 5 deadline to rescind non‑domiciled CDLs that auditors flagged as unlawful.
  • Transportation Secretary Sean Duffy cast the funding hold as a road‑safety step and criticized Gov. Gavin Newsom’s handling of the issue.
  • FMCSA Administrator Derek Barrs said the agency will not accept any corrective plan that keeps thousands of noncompliant drivers on the road.
  • A federal audit found more than one‑quarter of a sample of California’s non‑domiciled CDLs were unlawful, including licenses valid beyond work authorization.
  • California already faces a separate $40 million hold tied to English‑proficiency enforcement as nationwide audits continue and proposed limits on noncitizen licensing remain on hold in court.