DOT cuts funding to NY, cites non-domiciled CDL policies

(An analysis of the decision by the DOT to withhold funds from New York can be found in the FreightWaves Playbook here.) The battle over CDLs issued to non-citizens and non-domiciled drivers heated up on at least two fronts this week, with the U. S. Department of Transportation (DOT) taking aim at the state of New York.

Separately, a lawsuit filed in federal court in Florida sought to reinstate CDLs that had been cancelled for 19 people who were considered non-domiciled in Florida.

DOT Secretary Sean Duffy said in a prepared statement released Thursday that the Federal Motor Carrier Safety Administration (FMCSA), which is part of DOT, would withhold roughly $73 million from New York because it had not revoked what it said were illegally issued non-domiciled commercial learner’s permits and CDLs.

Move follows an audit from last year In December, the DOT said it had conducted an audit that found that more than 50% of CDLs issued in New York to non-domiciled had been improperly issued. When the DOT announced its findings, it said a FMCSA audit had sampled 200 records and found 107 “were issued in violation of federal law.”

Among the FMCSA findings were that CDLs had been issued to foreign drivers “without providing any evidence that it had verified their current lawful presence in the U. S.” The action announced Thursday was the reaction to those findings.

In a prepared statement, FMCSA administrator Derek Barrs said “New York’s continued refusal to fix these failures undermines that mission, and we will not allow federal dollars to support a system that falls short of the law.” In the letter sent by FMCSA to New York Gov.

Kathy Hochul and Mark Schroeder, the state’s motor vehicles commissioner, Barrs said New York’s response to the December complaint was that the state “continues to dispute the legal and procedural merits of FMCSA’s determination of noncompliance. New York asserted that the determination is without merit and stated that it declined to take corrective action.”

“New York’s arguments are without merit,” Barrs said in his letter. “States must require proof of lawful presence, in the form of an unexpired (Employment Authorization Document) or foreign passport, and must ensure the expiration date of the CLP or CDL does not exceed the expiration date stated on the driver’s lawful presence documents.

This is not a new requirement.” As a result of its findings, Barrs said in the letter that New York would have $73,502,543 withheld from New York’s National Highway Performance Program and Surface Transportation Program Block Grant funds. That is 4% of its allotment, Barrs said.

State association plays it down the middle The Trucking Association of New York (TANY) released a statement that did not overtly praise or criticize either the federal government or New York State. It said the decision by FMCSA was “deeply concerning and carries consequences that extend well beyond the trucking industry.”

The loss in funding will impact infrastructure projects, TANY said. It also suggested that there was nothing wrong with New York’s laws as written.

“New York’s CDL framework already requires compliance with strict federal standards, including verified work authorization, completion of entry-level driver training, and adherence to safety regulations governing driving behavior and controlled substances,” the TANY statement said.

But then it added: “These standards must be consistently enforced, and the integrity of the CDL program must be upheld. Ensuring strong oversight and accountability is essential to maintaining a level playing field for law-abiding drivers and carriers while protecting public safety and preserving economic opportunity.”

The association said it “stands ready to work with state and federal partners to restore compliance and rebuild confidence.” Pushing back in Florida The lawsuit involving Florida drivers was filed Wednesday in U. S. District Court for the Southern District of Florida. The plaintiffs are 19 individuals identified only by their initials.

The defendants include Barrs, Duffy, FMCSA, the DOT and Dave Kerner, the executive director of Florida Highway Safety and Motor Vehicles. The plaintiffs, according to the suit, either held or had applied new or renewed non-domiciled CDLs or CLPS by Florida.

They are all domiciled in a foreign country, according to the lawsuit but operate commercial vehicles in the Sunshine State. The suit cites recent changes in federal law regarding non-domiciled CDL holders, as well as similar policies in Florida to stop processing applications from non-domiciled applicants seeking new or renewed licenses.

“The combined effect of the Federal Defendants’ and State Defendants’ actions has been catastrophic for Plaintiffs: they cannot work, they cannot earn a living, they face financial ruin, and they have been deprived of vested property and liberty interests without due process of law — all without any individualized determination of fault, misconduct, or safety