The Trump administration will withhold approximately $160 million in federal transportation funding from California beginning in fiscal year 2027 after the state failed to revoke more than 17,000 commercial drivers’ licenses that federal regulators say were unlawfully issued, according to an announcement Wednesday by U.S. Transportation Secretary Sean Duffy, as reported by Fox News.
The funding penalty follows a “final determination” by the Federal Motor Carrier Safety Administration after California missed a Jan. 5, 2026, deadline to cancel the licenses.
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