The U.S. Department of Transportation is withholding roughly $160 million in federal transportation funds from California after the state failed to cancel more than 17,000 commercial driver’s licenses that were improperly issued to non‑U.S. citizens. The DOT warned in September that it could take this step and said California missed the Jan. 5 deadline to revoke the licenses. Funds will remain frozen while the federal government seeks compliance with federal CDL requirements.
U.S. Withholds $160 Million From California Over Improper Commercial Driver Licenses
U.S. and California flags fly together on a flag pole in Oceanside, California, U.S., October 24, 2017. REUTERS/Mike Blake
WASHINGTON — The U.S. Department of Transportation said on Wednesday it is withholding about $160 million in federal transportation funds from the state of California after the state failed to cancel more than 17,000 commercial driver’s licenses that were improperly issued to non‑U.S. citizens.
The department first warned California in September that it might take action if the state did not revoke the licenses. According to the DOT, California missed the agreed deadline of Jan. 5 to cancel the improperly issued commercial driver’s licenses (CDLs), prompting the decision to freeze funds while the federal government presses the state to comply with federal requirements.
Why the Move Matters
The withheld funds are tied to federal transportation programs and grants; the DOT says compliance with federal rules governing the issuance of CDLs is required to ensure safety and program integrity. The agency's step is aimed at enforcing those requirements and ensuring that commercial driving credentials are issued only to eligible applicants.
This action underscores ongoing tensions between state policies and federal regulatory standards. California officials have been given an opportunity to rectify the situation to restore access to the frozen funds, according to the DOT statement.
Reporting by David Shepardson in Washington; Editing by Chris Reese.
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