High-Stakes CDL Showdown: Federal Grants Clash with California’s Immigrant Labor Force
- 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.
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.
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
Lula Seeks Trade Agreement While Trump Links Tariffs to Bolsonaro Controversy
- Brazil's Lula and Trump agreed to immediate U.S.-Brazil trade negotiations after ASEAN summit talks, with Lula citing Trump's assurance of a swift resolution. - U.S. imposed 50% tariffs on Brazilian imports in August, linking them to Bolsonaro's legal issues, straining relations and disrupting $410B trade surplus. - Brazilian industry groups welcomed dialogue as tariffs raised U.S. prices, while Lula urged U.S. to respect Venezuela's sovereignty during the summit. - Trump hinted at broader regional deals

Solana News Update: BlockDAG's $430 Million Presale and DAG-PoW Technology Face Setbacks, Pending Listings
- BlockDAG's $430M presale and DAG-PoW tech position it as a top crypto contender with 15,000 TPS scalability. - DeepSnitch AI's $460K raise and AI-powered trading tools target retail investors with meme-friendly marketing. - Solana gains institutional traction via Fidelity listing but faces regulatory risks and competition from newer layer-1s. - BlockDAG's Binance AMA and delayed launch raise skepticism despite CertiK audits and F1 team partnerships. - Market uncertainty persists as unverified exchange li

XRP News Today: Major Investors Shift Capital to Lucrative Presales Amid Declining XRP Performance
- Institutional and retail investors shift capital from XRP/Chainlink to high-growth presales like LivLive, which raised $2M with 1000x ROI potential. - LivLive's AR-wearable blockchain ecosystem (Stage 1 at $0.02/token) and SPOOKY40 bonus drive its "best presale of 2023" status alongside $2.5M Treasure Vault incentives. - BlockchainFX ($BFX) and Snorter Bot (SNORT) join the trend with $10M/$5.6M presale targets, while BNB whales reallocate funds to projects like AI-powered DeFi hub Blazpay ($BLAZ). - Anal

Bitcoin News Update: BlackRock Offloads, Grayscale Acquires: Diverging Approaches in Crypto ETFs
- BlackRock transferred $430 million in Bitcoin and Ethereum to Coinbase Prime, linked to ETF redemptions amid crypto market volatility. - Grayscale deposited $138 million in crypto assets into Coinbase Prime, contrasting BlackRock's outflows and signaling divergent institutional strategies. - ETF flows show BlackRock's Bitcoin Trust (IBIT) absorbing 679.88 Bitcoin inflows while Grayscale's GBTC faced 522.85 Bitcoin outflows. - Market pressures persist as Bitcoin hovers near $108,000 and Ethereum remains b
