The U.S. Department of Transportation has withheld $73 million in federal funding from New York after determining that the state issued thousands of commercial driver’s licenses that did not meet federal standards, according to Transportation Secretary Sean Duffy.

The action follows a review of licensing practices that found a significant portion of commercial licenses issued to foreign drivers violated federal law.

The department said 32,000 licenses were issued in New York to foreign nationals, with 53% of those licenses determined to be noncompliant.

Fox News host Will Cain outlined the findings during an interview with Duffy, noting concerns about safety on American roadways.

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“America's roadways, a number of fatal tragedies have occurred with illegal truckers behind the wheel,” Cain said. “Today, the Transportation Department is taking action.”

Cain said the department’s review identified additional issues related to how licenses were issued.

“53% of the licenses reviewed or issued violated federal law, and the DMV issued eight-year licenses to foreign drivers, regardless of when their legal status expired,” Cain said.

Duffy said the decision to withhold funding was tied to safety concerns and the need for compliance with federal regulations governing commercial driver’s licenses.

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“Well, so first off, you show that footage on your screen of that crash,” Duffy said. “I think that was the one in Florida.”

He said incidents involving commercial drivers have raised broader concerns across multiple states.

“But we've seen these crashes across the country where we have commercial drivers, truck drivers that are unskilled to be on American roads,” Duffy said.

He said those conditions create risks for the public.

“And they're endangering American families, whether they go to Walmart or they go to church,” Duffy said.

Duffy said the federal review focused specifically on New York’s licensing practices.

“And so we have taken a hard look at this,” he said. “In New York alone, they have issued 32,000 licenses to foreigners.”

He reiterated the findings regarding noncompliant licenses.

“53% as you mentioned, of those licenses were illegally issued,” Duffy said.

He said the impact extends beyond New York because commercial drivers operate across state lines.

“And so that's that's dangerous for the the American traveler,” Duffy said. “And these people don't just stay these drivers don't just stay in New York. They travel across the country.”

Duffy said New York officials defended their actions when the issue was raised.

“And so the response from Kathy Hochul in New York was, listen, we didn't do anything wrong,” he said. “We followed the rules.”

However, Duffy said the federal government’s review found otherwise.

“But the truth is, they actually gave commercial driver's licenses to people who are in the country illegally,” he said.

He also addressed the duration of licenses issued under the state’s system.

“And to your point, they would give an eight year license to someone who might only be legally in the country for another three or four months,” Duffy said.

Duffy said the issue was brought to state officials prior to the funding decision.

“And so this was actually brought up to Kathy Hochul in December,” he said.

He said the department initially sought cooperation rather than immediate enforcement.

“I didn't want to pull money from New York,” Duffy said. “I want to work with New York. I want them to follow the rules.”

According to Duffy, those efforts did not result in changes.

“In New York, they completely rejected our offer to cooperate,” he said.

The withholding of $73 million represents the first step in enforcement actions, Duffy said, with additional measures possible if compliance is not achieved.

“And so that's step one,” he said. “We pulled $73 million. We pulled that today.”

He said further funding could be withheld if necessary.

“And then looking forward, if they don't get into compliance, there's additional tranches of money we can pull,” Duffy said.

He also indicated the federal government could take broader action affecting the state’s licensing authority.

“But in the end, we can pull their ability to actually even issue commercial driver's licenses,” he said.

Duffy said the department’s focus remains on roadway safety and regulatory compliance.

“We're going to do all we can to keep the American travelers safe on American roads,” he said.

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