“Once again, New York is facing devastating federal cuts for nothing more than political payback,” Hochul, a Democrat, said. “Ripping away money that goes toward critical safety upgrades on our roads is reckless and it is illegal.”
New York has filed a lawsuit against the Trump administration, claiming that the Department of Transportation’s abrupt decision to cancel more than $73 million in highway funding to the state was unlawful and politically motivated.
In a press release, New York Attorney General Letitia James said that the move could hurt the state’s infrastructure and, potentially, put residents’ lives at-risk.
“New Yorkers depend on safe, reliable roads and bridges to get to work, take their kids to school, and keep our economy moving. The administration cannot promise funding to our state and then abruptly yank it away,” James said. “By cancelling this funding, the federal government is putting jobs and communities at risk. New Yorkers are counting on these investments, and we will not let the president jeopardize our communities’ safety. My office is taking this administration to court to ensure New York gets every dollar it is owed.”

James’s office claims that the U.S. Department of Transportation spent “months” trying to coerce state officials into revoking certain Commercial Driver’s Licenses held by a number of non-citizen drivers. On April 16, the agency announced that it would withhold about $73.5 million in federal highway funding already approved for use in New York. It also threatened to cancel more than $147 million in other funds over the course of the next several years.
The lawsuit suggests that the Department of Transportation’s policy change with respect to CDLs was not only sudden but implemented without compelling reason.
“Attorney General James argues that DOT’s action is unlawful and based on a new, unsupported interpretation of its own longstanding regulations,” James’s office said. “For years, New York has issued CDLs in full compliance with federal law, as confirmed in DOT’s own reviews. Attorney General James contends that DOT’s sudden shift is arbitrary and capricious, exceeds the agency’s authority, and unlawfully attempts to coerce New York into cancelling thousands of validly issued licenses by threatening critical funding.”
New York Gov. Kathy Hochul, a co-plaintiff in the case, said that the Trump administration has already audited the state’s licensing program—and found that it was following all applicable federal regulations.
“Once again, New York is facing devastating federal cuts for nothing more than political payback,” Hochul, a Democrat, said. “Ripping away money that goes toward critical safety upgrades on our roads is reckless and it is illegal.”
Sources
New York is suing the federal government after losing $74 million over immigrant truck drivers
What to know about the fight over whether New York should lose $74M for not revoking immigrant CDLs


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