New York could lose $73 million in highway funds over ‘improperly issued’ driver’s licenses

He said he’ll withhold the federal highway funds unless the system is fixed.

But New York officials said they are following all the federal rules for the licenses and verifying drivers' immigration status.

New York is the latest state Duffy has targeted in his effort to make sure truck and bus drivers are qualified to get licenses.

His crackdown comes after a truck driver who was not authorized to be in the U.S. made an illegal U-turn and caused a crash in Florida that killed three people.

The rules on commercial driver’s licenses have been in place for years.

The Transportation Department has said it is auditing these non-domiciled licenses nationwide, but so far the only states he has threatened to sanction are all led by Democratic governors.

Duffy said Friday that this effort is not political but instead is about making sure everyone behind the wheel of an 80,000-pound truck is qualified and safe.

The transportation secretary said federal investigators found that more than half of the 200 licenses they reviewed in New York were issued improperly with many of them defaulting to be valid for eight years regardless of when an immigrant's work permit expires.

And he said the state couldn't prove it had verified these drivers' immigration status for the 32,000 active non-domiciled commercial licenses it has issued. Plus, investigators found some examples of New York issuing licenses even when applicants' work authorizations were already expired.

“When more than half of the licenses reviewed were issued illegally, it isn’t just a mistake — it is a dereliction of duty by state leadership. Gov. (Kathy) Hochul must immediately revoke these illegally issued licenses,” Duffy said.

New York has 30 days to respond to these concerns. State DMV spokesperson Walter McClure defended the state's practices.

“Secretary Duffy is lying about New York State once again in a desperate attempt to distract from the failing, chaotic administration he represents. Here is the truth: Commercial Drivers Licenses are regulated by the Federal Government, and New York State DMV has, and will continue to, comply with federal rules,” McClure said.

Immigrants account for about 20% of all truck drivers, but these non-domiciled licenses only represent about 5% of all commercial driver's licenses. The Transportation Department also proposed new restrictions that would severely limit which noncitizens could get a license but a court put the new rules on hold.

Duffy has threatened to withhold millions from California, Pennsylvania and Minnesota after the audits found significant problems under the existing rules like commercial licenses being valid long after an immigrant truck driver’s work permit expired. That pressure prompted California to revoke 17,000 licenses.