Overview

• Transportation Secretary Sean Duffy issued a formal warning to all DOT grant recipients, emphasizing compliance with federal laws on free speech, immigration enforcement, and anti-discrimination policies.
• The directive targets states and localities implementing DEI programs, which Duffy described as discriminatory and in violation of federal law and Supreme Court rulings.
• Recipients failing to cooperate with ICE investigations or issuing driver’s licenses to undocumented immigrants could face funding suspensions or enforcement actions.
• Duffy stressed that federal grants are contingent on adherence to legally binding agreements, urging recipients to seek guidance to ensure compliance.
• This move builds on President Trump’s day-one executive orders and follows prior threats to withhold funds from states like Maine over conflicting policies.