California is set to lose $160 million in federal funding after the state delayed canceling 17,000 commercial driver’s licenses held by immigrants.
The Federal Government announced the funding freeze on Wednesday, following a 2025 audit that revealed issues with the validity of these licenses.
Transportation Secretary Sean Duffy has given California until January 11 to revoke the licenses. The California Department of Motor Vehicles (DMV) had previously announced an extension of the cancellation date by 60 days, just before the New Year, impacting thousands of truck drivers in the state.
The decision to withhold funds comes as a significant setback for California’s transportation sector. The funds were originally earmarked for highway infrastructure projects. The delay in license cancellations has raised concerns about compliance with federal regulations, particularly those related to the eligibility of non-citizens to hold commercial driver’s licenses.
The DMV’s decision to extend the cancellation deadline has been met with criticism from federal authorities, who emphasize the importance of adhering to federal guidelines. The impact of this decision will be felt across California’s trucking industry, affecting both drivers and the businesses that rely on them.
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