Key insights
- New York is suing the US government over the cancellation of $73.5 million in highway funding. The dispute stems from New York's refusal to revoke certain commercial driver licenses, which the USDOT claims were illegally issued. While negative for New York's infrastructure, the impact on broader US equities is limited.
WASHINGTON, April 24 (Reuters) - 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.