The United States Department of Transportation continues to expand its “naughty list,” now including California, New York, and Colorado.
The U.S. Department of Transportation (DOT) continues to broaden its “naughty list.” In its effort to eliminate so-called sanctuary states, regulate the issuance of commercial driver’s licenses (CDLs), and make highways safer, the DOT has issued a series of ultimatums threatening certain states with the loss of federal funding if they fail to comply with federal standards.
Since Transportation Secretary Sean Duffy announced in April the strict reimplementation of English Language Proficiency (ELP) requirements, warning that enforcement could place thousands of drivers out of service, some states have chosen to challenge federal authority and pursue their own course. Similarly, the regulation of non-domiciled CDL issuance has been a persistent point of tension between the states and the DOT, which has labeled states that continue issuing them as “sanctuary states.”

The Department of Transportation’s “naughty list”: California, New York, and Colorado push back against federal regulations
States such as Minnesota, California, Pennsylvania, New Mexico, South Dakota, Texas, Washington, and most recently Colorado have appeared on the DOT’s naughty list. However, the most high-profile cases have been California, New York, and Colorado, states that have received explicit warnings about the potential loss of federal funding.
California has prolonged its dispute with the Department of Transportation for months, with the most recent development reaching the courts. On December 12, the state of California filed a lawsuit seeking injunctive and declaratory relief in the U.S. District Court for the Northern District of California, challenging the decision to withhold more than $33 million in federal funds.
Although California maintains that it already enforces Federal Motor Carrier Safety Administration (FMCSA) regulations requiring commercial drivers to read and speak English, Secretary Duffy stated days before the lawsuit that California is the only state that has refused to enforce the rules and remove noncompliant truck drivers from the road.
The dispute dates back to August 21, when Duffy gave California 30 days to respond or face the loss of $33 million in federal funding. On September 25, California Governor Gavin Newsom responded, and the conflict continued into early December.
In New York, tensions with the Department of Transportation have also escalated. On December 12, Duffy announced he would withdraw $73 million in federal highway funds after an audit revealed that more than half of the Empire State’s commercial driver’s licenses had been issued to foreign drivers who were in the United States illegally.
The transportation secretary granted the state 30 days to revoke all commercial driver’s licenses deemed illegal in New York, suspend the issuance of new licenses and learner’s permits, and conduct its own comprehensive audit. Failure to comply would result in the withdrawal of federal funds.
The most recent state added to the DOT’s list is Colorado. On Monday, December 22, Duffy threatened to pull $24 million in federal funding from Colorado if the state did not immediately revoke illegally issued commercial driver’s licenses. Beyond that, Duffy stated that the DOT could revoke certification of Colorado’s entire CDL program if the state fails to take the necessary corrective action.
Colorado has not yet responded; however, the DOT is expected to continue pressing the state within the established 30-day window. Colorado also received a letter in October regarding the issuance of non-domiciled CDLs, citing examples in which licenses were issued for periods longer than an individual’s authorized work duration.
Department of Transportation firm on protecting road safety
The Department of Transportation has firmly embraced its role as a guardian of roadway safety in the United States. In a coordinated effort to remove from service drivers deemed dangerous due to failure to meet English language proficiency requirements, the DOT seeks to “clean up” the roads by eliminating actors who may engage in risky behavior, endangering the lives of others and undermining the integrity of government transportation agencies.
To date, more than nine states have received formal notices ordering them to cease the issuance of non-domiciled and improperly timed commercial driver’s licenses (CDLs). Additional updates are expected in the coming weeks as the 30-day deadlines issued by the federal authority begin to expire.

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