A group of U.S. senators and congressmen from California has urged Transportation Secretary Sean Duffy to restore nearly $160 million in federal funding that was withheld earlier this year.
In January, the Federal Motor Carrier Safety Administration announced it was withholding nearly $160 million from the state for failing to cancel 17,000 non-domiciled commercial driver’s licenses by its deadline.
Led by Sen. Adam Schiff (D), the group of 21 lawmakers also called on the Department of Transportation to rescind its final rule on non-domiciled CDLs.
“Implementing a rule that effectively pauses or severely restricts non-domiciled CDL programs nationwide and withholding $160 million in FY2027 National Highway Performance Program funds from California – infrastructure dollars meant to maintain roads all Americans use – are punitive actions that undermine road safety and the integrity of our national supply chain and workforce,” the lawmakers wrote in a June 11 letter.
“As California accounts for approximately 25% of the nation’s drayage capacity – the critical short-haul trips moving goods from our ports to the national supply chain – the Department’s rule creates an immediate bottleneck with national implications. Industry estimates suggest this rule could reduce the workforce in states like California by 15% to 25%, creating localized pressures that will resonate throughout the supply chain.”
The letter noted that California paid $275.6 billion more to the federal government in fiscal 2024 than it received, the largest net contribution gap of any state.
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