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New York Sues US for Canceling $73.5 Million in Highway Funding
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By Reuters
Published 2 days ago on
April 24, 2026

New York Attorney General Letitia James speaks to the media outside the U.S. District Court for the Eastern District of Virginia, in Norfolk, Virginia, U.S., October 24, 2025. (Reuters File)

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New York sued the Trump administration Friday for withholding more than $73.5 million in highway funding over the state’s decision not to revoke some commercial driver licenses.

New York Attorney General Letitia James and Governor Kathy Hochul said the legal challenged in the U.S. Court of Appeals for the Second Circuit seeks to reverse the decision by the U.S. Transportation Department last week to cancel the funding after the state refused the federal government’s demands to revoke certain driver’s licenses.

New York says the loss of funding puts New Yorkers at risk, while USDOT said in December an audit found New York had been routinely issuing commercial driver licenses to foreign drivers illegally.

(Reporting by David Shepardson)

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