California is facing fallout from having issued truck driver’s licenses to foreign nationals unlawfully, even while blue state governors resist the Trump administration.
On Wednesday, Transportation Secretary Sean Duffy called it a “day of reckoning” for California, especially for Governor Gavin Newsom.
Duffy stated, “Gavin refused. So I’m now pulling nearly $160 million out of California.”
In a social media announcement, Duffy outlined the administration’s stance: “Follow the rules. Revoke illegally issued licenses to dangerous foreign drivers. Fix the system so this never happens again.” His post follows extensive demands for California to cancel commercial driver’s licenses that were unlawfully granted to foreign citizens. He accompanied the post with a brief video indicating that Newsom has often adhered to federal regulations.
Despite this, Duffy remarked, “Gavin refused,” leading to the decision to withdraw significant federal funds. Funding cuts will commence in fiscal year 2027.
In November, California agreed to revoke all these improperly issued licenses within 60 days, but by the January 5, 2026 deadline, the state failed to do so. This failure is now resulting in federal funding being withheld.
Initially, the plan was to revoke at least 17,000 licenses by the deadline. According to an audit from the Federal Motor Carrier Safety Administration (FMCSA), more than 20,000 active commercial driver’s licenses were issued in violation of federal guidelines. The FMCSA characterized California’s licensing process as a “systemic breakdown.”
FMCSA Secretary Derek Bars pointed out, “Federal regulations are clear: States must correct safety deficiencies according to a schedule mutually agreed upon by the federal government, but California has failed to deliver on its promise.”
Bears went on to say, “A remedial plan that blatantly disregards federal safety regulations and allows numerous drivers with non-compliant licenses to operate trucks weighing 80,000 pounds is unacceptable.”
In response to the impending loss of funds, California DMV spokesperson Eva Spiegel issued a statement: “We strongly oppose the federal government’s decision to withhold crucial transportation funds from California. These funds are vital for maintaining and enhancing our roads, and such actions jeopardize public safety.”
