Federal Standoff: USDOT Withholds Millions From California Over Commercial License Dispute

The U.S. Department of Transportation is withholding $160 million in federal funds from California for not cancelling over 17,000 commercial driver's licenses improperly issued to non-U.S. citizens. California disputes the decision, citing compliance and public safety concerns. Talks continue to extend the cancellation deadline for further review.

The U.S. Department of Transportation (USDOT) announced that it is withholding $160 million in federal funding from the state of California, allegedly due to the state's failure to cancel more than 17,000 commercial driver's licenses issued to non-U.S. citizens improperly.

This funding suspension follows a previous warning issued in September and a missed deadline on January 5, according to federal authorities. However, a spokesperson for the California Department of Motor Vehicles insists that they are complying with state and federal regulations.

Further complicating matters is California's ongoing legal action against USDOT for restricting federal grants based on alleged non-compliance with driver's English proficiency requirements. The debate underscores tensions between California and federal administration, with further negotiations expected.

(With inputs from agencies.)