DOT Withholds $160M From California: Trucking Dispute

by Ethan Brooks

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USDOT Withholds Funding from California Over CDL Dispute



USDOT Withholds Funding from California Over CDL Dispute

(WASHINGTON) – The U.S. Department of Transportation will withhold approximately $160 million in safety program funding from California after the state failed to cancel more than 17,000 commercial truck driver’s licenses, a move announced Wednesday by Transportation Secretary Sean Duffy.

The funding cut stems from a dispute over licenses allegedly unlawfully issued to foreign truckers, raising concerns about road safety and compliance with federal regulations.

key Takeaways

  • The Federal Motor Carrier Safety Governance (FMCSA) is penalizing California for failing to revoke licenses issued to drivers potentially not authorized to operate in the U.S.
  • California was given a January 5 deadline to cancel the licenses but requested an extension to March 6, which the FMCSA denied.
  • The $160 million penalty is the first in a series of potential sanctions, with the amount potentially doubling in the second year if California continues to defy the FMCSA’s determination.

“Duffy further claimed, “We’re pulling this funding to ensure federal tax dollars don’t fund this charade.”

A nationwide audit conducted by the FMCSA last summer revealed a “systemic collapse” in California’s handling of non-domiciled Commercial Driver’s Licenses (CDLs), which are issued to individuals who are not U.S. citizens or permanent residents, according to government officials. The audit reportedly found licenses were issued with expiration dates extending years beyond a driver’s lawful presence in the U.S.

FMCSA Administrator Derek Barrs emphasized the agency’s firm stance on removing noncompliant drivers from the road. “Federal regulations are clear: states must correct safety deficiencies on a schedule mutually agreed upon by the agency, and California failed to meet its commitment,” Barrs stated. “We will not accept a corrective plan that knowingly leaves thousands of drivers holding noncompliant licenses behind the wheel of 80,000-pound trucks in open defiance of federal safety regulations.”

The $160 million penalty represents the first year of potential sanctions, with the possibility of the amount doubling in the second year if California continues to defy the FMCSA’s determination.

The California DMV expressed disagreement with the federal government’s decision. “We strongly disagree with the federal government’s decision to withhold vital transportation funding from California – their action jeopardizes public safety because these funds are critical for maintaining and improving the roadways we all rely on every day,” said Eva Spiegel, Public Affairs Deputy Director for the california DMV, in an email statement. “The DMV is fully compliant with state and federal regulations and had engaged in positive conversations with FMCSA and DMV about extending the january 5 cancellation date to allow additional time for FMCSA to review the department’s commercial driver’s license program.”

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