Bitget App
Trade smarter
High-Stakes CDL Showdown: Federal Grants Clash with California’s Immigrant Labor Force

High-Stakes CDL Showdown: Federal Grants Clash with California’s Immigrant Labor Force

Bitget-RWA2025/10/26 23:44
By:Bitget-RWA

- U.S. Transportation Secretary Sean Duffy threatens $160M federal funding cuts against California over CDL issuance to noncitizens, citing safety risks. - California defends its CDL program as legal and safe, but federal audits revealed 25% of licenses improperly reviewed, including four with expired work permits. - The dispute follows a 2023 fatal Florida crash involving an undocumented immigrant driver and highlights 60,000 estimated invalid licenses in California. - Federal regulators could revoke Cali

U.S. Transportation Secretary Sean Duffy has heightened an ongoing conflict with California, cautioning that the state could lose $160 million in federal funds due to its practice of granting commercial driver's licenses (CDLs) to noncitizens. Speaking on Fox News Sunday, Duffy stressed that Governor Gavin Newsom has not adhered to federal directives that require California to stop issuing these licenses and to reassess those already granted. "We also have the authority to revoke California's power to distribute commercial driver's licenses," Duffy stated, hinting at the possibility of stripping the state of its CDL program oversight, according to an

.

This warning comes as part of a larger federal effort to restrict CDLs for noncitizens, following several deadly accidents involving immigrant drivers. In September, the Transportation Department imposed stricter rules, narrowing CDL eligibility to three visa types and mandating that states confirm applicants' immigration status through a federal system. According to the AP, these licenses will now be valid for a maximum of one year or until the visa expires, whichever occurs first.

High-Stakes CDL Showdown: Federal Grants Clash with California’s Immigrant Labor Force image 0

California has stood by its licensing approach, pointing out that its CDL drivers have a lower accident rate than the national average and Texas, which has the highest number of commercial drivers. A spokesperson for Newsom previously dismissed Duffy's remarks, asserting that the state's licensing process is both lawful and secure. Nevertheless, federal investigators discovered that California improperly processed 25% of 145 licenses reviewed, including four that remained active years after the drivers' work permits had expired, the AP reported.

The origins of the dispute can be traced to a deadly crash in Florida in 2023, where a driver of Indian descent, allegedly in the country unlawfully, made an illegal U-turn that resulted in three deaths. An ensuing audit uncovered widespread licensing issues in California, Colorado, Pennsylvania, South Dakota, Texas, and Washington, with Duffy estimating that 60,000 noncitizens in California possess invalid licenses. "They're operating fuel tankers and school buses," Duffy remarked, noting that such drivers have been involved in fatal incidents, according to the AP.

Duffy also pointed to a separate $40 million penalty imposed on California for not upholding English proficiency standards for truck drivers, a regulation that predates the Florida accident. California's official reply to the Transportation Department failed to meet federal expectations, with officials arguing that the state's policies put public safety at risk, the AP added.

This clash highlights a deeper ideological divide between federal and state governments over immigration policy and regulatory independence. Newsom's office has yet to comment on the latest developments, but the administration has consistently portrayed its CDL program as essential for immigrant workers. On the other hand, critics like Duffy contend that weak oversight fosters fraud and endangers road safety, the AP noted.

Losing the authority to issue CDLs could have a significant effect on California's trucking sector, which depends heavily on immigrant drivers. If enforced, the penalty would be similar to previous federal strategies that used transportation funding as leverage to push for policy changes, such as seat-belt and speed limit laws, as mentioned in a

.

As the conflict persists, the Transportation Department's actions have come under fire from both sides of the political aisle. While Republicans generally back the stricter measures, Democrats have condemned the funding threats as harsh and ineffective. The controversy is expected to escalate as federal authorities consider additional enforcement steps, the AP concluded.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

You may also like

Digital Growth Contrasts with North American Decline: Western Union's Cryptocurrency Initiative Encounters Major Challenge

- Western Union's Q3 earnings ($0.47/share) exceeded forecasts, driven by 7% digital revenue growth and 49% consumer services surge. - $500M Intermex acquisition and dLocal partnership expand Latin American reach, targeting $161B remittance market expansion. - Stablecoin adoption accelerates post-GENIUS Act, with on-chain settlements pilot aiming to cut costs and speed cross-border transfers. - Analysts remain cautious despite 55% digital transaction penetration, citing North American slump and competition

Bitget-RWA2025/10/27 12:20
Digital Growth Contrasts with North American Decline: Western Union's Cryptocurrency Initiative Encounters Major Challenge

U.S.-U.K. Trade Agreement Falters Amid Cultural Differences and Technical Conflicts, Disrupting Trump’s International Agenda

- U.S.-U.K. trade deal faces delays due to technical disputes and cultural clashes, risking Trump’s global strategy. - Initial terms aim to cut tariffs on cars, steel, and aluminum, but unresolved issues like supply chain rules and jet engine exemptions stall progress. - Parallel U.S. negotiations with China and ASEAN nations highlight a shift toward bilateralism, with mixed outcomes on tariffs and trade balances. - British officials resist U.S. demands for relaxed standards, emphasizing reciprocal benefit

Bitget-RWA2025/10/27 12:20
U.S.-U.K. Trade Agreement Falters Amid Cultural Differences and Technical Conflicts, Disrupting Trump’s International Agenda

XRP News Today: As XRP Declines, Investors Turn to MUTM's Practical Benefits

- Crypto investors shift focus to DeFi projects like Mutuum Finance (MUTM) as XRP struggles despite Absa Bank partnership, per Cryptopolitan. - MUTM's $0.035 Phase 6 presale raised $17.95M with 250% price growth since launch, driven by P2P/P2C lending model and CertiK audit (90/100 score). - XRP trades below $2.50 amid declining futures open interest, contrasting MUTM's $17.8M total funding and Q4 2025 roadmap for liquidity pools and mtTokens. - Analysts highlight MUTM's utility-driven DeFi approach with g

Bitget-RWA2025/10/27 12:20
XRP News Today: As XRP Declines, Investors Turn to MUTM's Practical Benefits

Cardano News Update: SEC's ETF Deadlock Casts Uncertainty on Altcoin Rebound

- SEC's delayed approval of 150+ altcoin ETFs has stifled institutional interest in non-Bitcoin cryptos, with Solana (23 filings) and XRP (20) leading applications. - Prolonged regulatory limbo risks liquidity crunch as altcoin inflows fall below $100B, while Bitcoin's 60% dominance limits altcoin price recoveries. - Cardano and Sui show optimism with 77% ETF approval odds and Coinbase staking updates, but 16 crypto firms face OCC bank license hurdles amid traditional banking resistance. - Bitcoin ETFs out

Bitget-RWA2025/10/27 12:20
Cardano News Update: SEC's ETF Deadlock Casts Uncertainty on Altcoin Rebound