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Legal — Transportation

Court Rules Trump Administration Cannot Withhold New York Highway Funds

The Transportation Department froze the funds after New York refused to revoke certain licenses.

,   and  TIPP Staff
2 min read
Trump cannot withhold highway funding from New York, court says. Pic via(@EconomicTimes)

A federal appeals court ruled Friday that the Trump administration overstepped its authority by withholding $73.5 million in highway funding from New York over disputes involving commercial driver licenses issued to foreign drivers.

The Transportation Department froze the funds after New York refused to revoke certain licenses. The department cited an audit alleging that the state had routinely issued them illegally.

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However, the court said the decision violated fair notice principles and departed from the regulatory text, failing to account for regulatory complexity.

The ruling comes after USDOT threatened to withhold another $147 million annually from the state.

It also follows other court disputes in which the department was ordered to release approximately $3 billion for Chicago rail projects and continue payments for the $16 billion Hudson Tunnel project.

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