New York Attorney General Letitia James has filed a lawsuit to block the Trump administration’s cancellation of more than $73 million in highway funding for New York state. The U.S. Department of Transportation (DOT) announced it would withhold the funding after New York refused DOT’s demands to revoke certain Commercial Driver’s Licenses (CDL), all of which the state says were issued in full compliance with state and federal regulations. The lawsuit argues that the action withholding the funding is illegal and puts New Yorkers at risk, and asks the court to order restoration of the full funding to the state.
The lawsuit was filed in the U. S. Court of Appeals for the Second Circuit. The plaintiffs are the State of New York and the New York State Department of Motor Vehicles. Named as defendants are: the U. S. Department of Transportation; Sean Duffy in his official capacity as secretary of the Department of Transportation; the Federal Motor Carrier Safety Administration; and Derek Barrs in his official capacity as Administrator of the Federal Motor Carrier Safety Administration,
“Once again, New York is facing devastating federal cuts for nothing more than political payback. Here’s the truth: New York has always followed federal rules when issuing CDLs, something even the previous Trump Administration verified year after year,” Gov. Kathy Hochul said. “Ripping away money that goes towards critical safety upgrades on our roads is reckless and it is illegal. Standing with Attorney General James, we will fight — and win — in court to restore this funding and ensure that our roads are safe for millions of New Yorkers who rely on them.”
According to James, “New Yorkers depend on safe, reliable roads and bridges to get to work, take their kids to school, and keep our economy moving. The administration cannot promise funding to our state and then abruptly yank it away. By canceling this funding, the federal government is putting jobs and communities at risk. New Yorkers are counting on these investments, and we will not let the president jeopardize our communities’ safety. My office is taking this administration to court to ensure New York gets every dollar it is owed.”
According to James and Hochul, for months the DOT has attempted to pressure New York to revoke certain lawfully-issued CDLs held by certain non-citizen drivers. On April 16, the agency announced it would block more than $73.5 million in federal highway funding already approved for New York and threatened to annually withhold an additional $147 million in future years. New York state says it issues CDLs in compliance with state and federal requirements; all drivers must have legal immigration status and meet strict testing and safety standards to qualify for a CDL. The state says revoking these licenses would disrupt key industries that rely on commercial drivers and could lead to bus driver shortages affecting schools and families.
The lawsuit argues that DOT’s action is unlawful and based on a new, unsupported interpretation of its own long standing regulations. The lawsuit contends that DOT’s sudden shift is arbitrary and capricious, exceeds the agency’s authority, and unlawfully attempts to coerce New York into canceling thousands of validly issued licenses by threatening critical funding.
New York’s highway funding is allocated through federal programs established by Congress to support road maintenance, safety improvements, and infrastructure upgrades. Losing this funding could delay or cancel critical transportation projects, increase costs, and harm local economies across the state.
The lawsuit asks the court to overturn DOT’s decision and restore the funding to New York.
