Appeals court rules against Trump administration on New York highway funds
SPY•A federal appeals court ruled that the Trump administration exceeded its authority when it withheld $73.5 million in highway funding from New York over commercial driver licenses issued to foreign drivers.
1. Court rejects funding decision
The 2nd U.S. Circuit Court of Appeals ruled that the U.S. Transportation Department exceeded its authority when it withheld $73.5 million from New York in April. The department cited an audit finding that New York had routinely issued commercial driver licenses to foreign drivers illegally.
2. State challenged withholding
New York sued after refusing federal demands to revoke certain licenses. The state said revocations could disrupt industries reliant on commercial drivers and cause bus driver shortages affecting schools and families. USDOT had also threatened to withhold an additional $147 million a year.
3. Other funding disputes
New York, California and other states have repeatedly sued the Trump administration over transportation funding suspensions. Courts have also ordered continued payments for the $16 billion Hudson Tunnel project, blocked efforts to stop New York City's congestion pricing program, and ordered USDOT to unfreeze about $3 billion for Chicago-area rail projects.
