The Department of Transportation’s “naughty list”

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.