U.S. government withholds New York funds over refusal to revoke immigrant driver licenses

On 2026-04-25, the U.S. Department of Transportation reportedly withheld nearly $74 million in highway funds from New York after the state declined to revoke about 33,000 questioned commercial driver’s licenses held by non-domiciled immigrants. New York said it would not revoke the licenses and filed suit to challenge the decision, calling it political retaliation.