Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
The Trump administration is withholding NY transportation funds, again. NY's suing, again.
By
Ryan Kost
Published Apr 25, 2026
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
Photo by Eric Lee/Getty Images
By
Ryan Kost
Published Apr 25, 2026
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
New York officials are suing the Trump administration to recover more than $73 million in highway funding, in a fight over noncitizens’ access to commercial drivers licenses.
It’s the latest of several battles between the federal government and New York over transportation — with courts repeatedly smacking down the Trump administration’s attempts to hold back funding over policy disputes.
State Attorney General Letitia James and Gov. Kathy Hochul filed the suit in federal court Friday. They’re looking to recover funds the federal Department of Transportation is withholding over licenses and permits it says were illegally issued. The state argues that it's done nothing wrong, and that the licenses at the heart of the issue were issued in compliance with both state and federal regulations.
James and Hochul said in a press release that revoking the licenses would disrupt key industries, and could lead to bus driver shortages.
The Department of Transportation has said an audit by the Federal Motor Carrier Safety Administration released in December found that more than half of the New York licenses reviewed had been issued in violation of federal law. Gothamist reported in February that the Hochul administration stopped issuing commercial drivers licenses to many immigrants following federal threats to withhold funding in response, drawing sharp criticism from transit unions.
But the transportation department alleges New York remains out of compliance, and this month announced it would withhold the $73 million — 4% of the state’s National Highway Performance Program. U.S. Transportation Secretary Sean P. Duffy. said at the time he was holding the state accountable for failing to protect its residents from "unvetted, unqualified foreign drivers," including by issuing eight-year licenses to noncitizen drivers without regard to when their legal status expires.
That money is used for road maintenance, safety upgrades and infrastructure projects across New York, according to Hochul and James. They plan to file a motion to expedite the case to head off any disruptions, according to their statement.
The federal transportation department has threatened to withhold an additional $147 million in future highway funding each year if New York doesn't comply, according to James and Hochul.
State and federal authorities have also gone to court over New York City’s congestion pricing rules, with a federal judge saying in March the Trump administration’s attempt to stop the tolls was unlawful. Courts also ordered the administration to restore funds for the Second Avenue subway in a standoff over what the feds claimed were unlawfully awarded “DEI” contracts, as well as the Gateway Hudson Tunnel project.
— Stephen Nessen contributed reporting
Tagged
Politics
new york state
transportation
Ryan Kost
Ryan Kost is a reporter on the day-of news desk, where he covers breaking news and writes enterprise stories about jails, courts, prosecutors and government accountability. His work focuses on the public institutions that shape life in New York. Before joining the newsroom, he lead a multi-part investigation with Columbia Journalism Investigations and New York Focus into how New York prosecutors handle wrongful conviction claims. He's also been a staff writer at The San Francisco Chronicle, The Associated Press and The Oregonian. Got a tip? Signal: ryankost.20
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Judge temporarily halts overnight construction at NYC’s Chinatown jail
The order comes after Chinatown residents sued the city over noise, health concerns and years of planned after-hours construction.
By
Giulia Heyward
Published Oct 26, 2026 at 7:08 p.m. ET
Pressure grows on Mamdani to reform admissions to NYC specialized high schools
A former top-school official will join councilmembers and other prominent educators at an event focused on specialized high schools.
By
Elizabeth Kim
News
Pressure grows on Mamdani to reform admissions to NYC specialized high schools
A former top-school official will join councilmembers and other prominent educators at an event focused on specialized high schools.
By
Elizabeth Kim
Police search for man in Central Park sexual assault
By
Charles Lane
Rockefeller Center's 2026 Christmas tree is a 76-foot spruce from Upstate New York
By
Giulia Heyward
‘A killer cop lives here’: Brooklyn arrests raise questions about limits of free speech
By
Ben Feuerherd
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .