California loses $160M in fed funds as illegal trucker licenses not canceled by deadline

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An ICE agent walks through a grocery store parking lot during an immigration raid in Mecca, California. REUTERS

An ICE agent walks through a grocery store parking lot during an immigration raid in Mecca, California. REUTERS

It is being described as a “reckoning day” for California after the Trump administration announced it will withhold $160 million in federal funding from the state.

The decision comes after California missed a federal deadline to revoke roughly 17,000 commercial driver’s licenses that federal officials say were improperly issued to illegal immigrants. U.S. Transportation Secretary Sean Duffy said the state failed to comply with clear requirements.

“Our demands were simple: follow the rules, revoke the unlawfully issued licenses to dangerous foreign drivers, and fix the system so this never happens again,” Duffy said in a statement. “Governor Gavin Newsom has failed to do so — putting the needs of illegal immigrants over the safety of the American people.”

According to federal officials, a nationwide audit released in September found that more than 25% of immigrant commercial driver’s licenses issued by California were invalid. Some licenses reportedly remained active years after the expiration of the holder’s lawful presence documentation.

The Trump administration set a Jan. 5 deadline for California to cancel the licenses. While the state initially agreed to comply, officials announced in December that the revocations would be delayed to allow immigrants who legally qualify to retain their licenses.

That decision followed a lawsuit filed by a coalition representing nearly 20,000 immigrant truck drivers. The group argued that mass license revocations would lead to widespread work stoppages and said the state had not created a process to resolve disputed licenses before the federal deadline.

The issue gained national attention after several deadly trucking accidents involving drivers who were in the country illegally. In August, an illegal immigrant truck driver was involved in a crash in Florida while making an illegal U-turn, killing three people. In October, another semitruck driver, Jashanpreet Singh, was cited for gross negligence after causing a multi-vehicle crash in California that left three people dead and several others injured, according to the San Bernardino County District Attorney.

Federal officials say the funding freeze will remain in place until California complies with federal licensing requirements.

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