High-Stakes CDL Battle: Federal Funding vs. California's Immigrant Workforce

U.S. Transportation Secretary Sean Duffy has escalated a contentious dispute with California, warning that the state will face a $160 million federal funding cut over its issuance of commercial driver's licenses (CDLs) to noncitizens. In a Sunday interview on Fox News, Duffy emphasized that California Governor Gavin Newsom has refused to comply with federal rules requiring the state to halt such licenses and review existing ones. "We also have the option of pulling California's ability to issue commercial driver's licenses," Duffy said, signaling a potential revocation of the state's authority to administer CDL programs, according to an AP News report.

The threat comes amid a broader federal crackdown on CDL issuance to noncitizens, prompted by a series of fatal crashes linked to immigrant drivers. In September, the Transportation Department tightened regulations, limiting CDL eligibility to three specific visa categories and requiring states to verify applicants' immigration status through a federal database. Licenses will now be valid for up to one year or until a visa expires, whichever comes first, the AP report said.

California has defended its practices, noting that CDL holders in the state have a lower crash rate than the national average and Texas, the only state with more licensed commercial drivers. A Newsom spokesperson previously dismissed Duffy's criticism, arguing that the state's system is both legal and safe. However, federal auditors found that California had issued 25% of 145 licenses improperly reviewed, including four that remained valid years after drivers' work permits expired, the AP report found.

The dispute traces back to a fatal 2023 crash in Florida, where an Indian-origin driver allegedly in the U.S. illegally made an illegal U-turn, killing three people. A subsequent audit revealed widespread licensing irregularities in California, Colorado, Pennsylvania, South Dakota, Texas, and Washington, with Duffy estimating that 60,000 noncitizens in California hold invalid licenses. "They're driving fuel tankers and school buses," Duffy said, adding that such drivers have contributed to fatal crashes, according to the AP report.

Duffy also highlighted a separate $40 million funding penalty against California for failing to enforce English language requirements for truckers, a rule predating the Florida crash. California's formal response to the Transportation Department did not satisfy federal officials, who argue the state's policies endanger public safety, the AP report added.

The conflict underscores a broader ideological clash between federal and state authorities over immigration enforcement and regulatory autonomy. Newsom's office has not yet responded to recent requests for comment, but the administration has consistently framed its CDL program as a lifeline for immigrant workers. Meanwhile, critics like Duffy argue that lax oversight enables fraud and compromises road safety, the AP report noted.

The potential loss of CDL-issuance authority could severely impact California's trucking industry, which relies heavily on immigrant labor. If implemented, the penalty would mirror past federal tactics where transportation funding was leveraged to enforce policy changes, such as seat-belt laws and speed limits, as noted in a RedState article.

As the standoff continues, the Transportation Department's actions have drawn scrutiny from both political parties. While Republicans have largely supported the crackdown, Democrats have criticized the funding threats as punitive and counterproductive. The debate is likely to intensify as the federal government weighs further enforcement measures, the AP report concluded.