FMCSA withheld $160 million in highway funds from California over delayed revocation of 17,000 commercial licenses
The Federal Motor Carrier Safety Administration announced on January 7, 2026 that it was withholding $160 million in federal highway funds from California after the state delayed, until March, the revocation of roughly 17,000 commercial driver's licenses a federal audit found were unlawfully issued to non-domiciled and visa-expired holders. Transportation Secretary Sean Duffy tied the penalty to Governor Gavin Newsom "putting the needs of illegal immigrants over the safety of the American people," while FMCSA Administrator Derek Barrs said the agency would not accept a plan leaving noncompliant drivers behind the wheel of commercial trucks. California's DMV disputed that the withholding served public safety, saying it had cooperated with FMCSA on the review.
