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FMCSA Withholds $73 Million From New York
DOT Says Audit Found Violations in Non-Domiciled CDL and CLP Issuance
Key Takeaways:
- FMCSA moved to withhold $73.5 million in federal highway funds from New York after an audit found widespread violations in non-domiciled CDL issuance.
- DOT said 107 of 200 records violated federal law, a 53% failure rate, prompting a 4% funding hit tied to safety and licensing standards.
- After a final determination of substantial noncompliance, FMCSA will withhold funds until New York rescinds noncompliant licenses and completes required corrective actions.
The Federal Motor Carrier Safety Administration more than $73 million in federal highway funding from New York, saying the state failed to revoke illegally issued non-domiciled commercial learner’s permits and commercial driver licenses.
The action follows a federal audit of New York’s commercial driver licensing program that identified widespread violations of federal requirements tied to non-domiciled CLPs and CDLs, according to the Department of Transportation.
Transportation Secretary Sean Duffy said the funding decision reflects the federal government’s view that New York has failed to adequately address safety-related licensing deficiencies.
“I promised the American people I would hold any state leader accountable for failing to keep them safe from unvetted, unqualified foreign drivers,” Duffy said. “I’m delivering on that promise today by refusing to fund Gov. [Kathy] Hochul’s dangerous, anti-American policies. My message to New York’s far-left leadership is clear: Families must be prioritized on American roads.”
FMCSA said its audit reviewed 200 sampled records and found 107 were issued in violation of federal law, a failure rate of more than 53%. The agency said the findings reflected systemic problems in how the state administered non-domiciled CDLs.
The department said FMCSA issued a final determination of substantial noncompliance after concluding that New York did not complete required corrective actions from the audit. As a result, the agency moved to withhold $73,502,543 in federal funds.
The withheld amount represents about 4% of New York’s funding under the National Highway Performance Program and the Surface Transportation Program Block Grant, the department said.
FMCSA Administrator Derek Barrs said the agency’s enforcement action is tied to its core safety mission and federal licensing standards.
“FMCSA’s mission is safety,” Barrs said. “That means ensuring that every commercial driver on the road is properly vetted and qualified. New York’s continued refusal to fix these failures undermines that mission, and we will not allow federal dollars to support a system that falls short of the law.”
FMCSA said the audit found that New York’s Department of Motor Vehicles systems defaulted to issuing eight-year CDLs for certain non-REAL ID credentials, regardless of when a driver’s lawful status in the United States expired. Federal regulations require that non-domiciled CDLs align with the duration of a driver’s authorized presence, the agency said.
DOT said FMCSA first identified the licensing problems during a nationwide audit of CDL programs that concluded Dec. 12. That review found that New York had been routinely issuing CDLs to foreign drivers in ways that did not comply with federal requirements.
On March 13, FMCSA issued a formal response refuting the state’s claims of compliance. The agency said New York had not completed required corrective actions, including the immediate rescission of all noncompliant non-domiciled CLPs and CDLs.
After determining that the deficiencies remained unresolved, FMCSA issued its final determination and moved forward with the partial withholding of federal highway funds, DOT said.
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