Colorado Faces Federal Funding Cut Over Illegal Issuance of Commercial Driver’s Licenses to Noncitizens

Transportation Secretary Sean Duffy said the state could lose up to $24 million in federal highway funding.

Transportation Secretary Sean Duffy speaks during a press conference at LaGuardia Airport in New York City on Oct. 28, 2025. Michael M. Santiago/Getty Images

The state of Colorado could lose up to $24 million in federal highway funding due to the state’s slow response to violations involving the issuance of commercial driver’s licenses (CDL) to noncitizens, U.S. Transportation Secretary Sean Duffy announced on Monday.

The warning stems from an October federal audit demonstrating that approximately 22 percent of Colorado’s CDLs given to non-citizens, including Mexican nationals, violated federal prohibitions.

“Every day that goes by is another day unqualified, unvetted foreign truckers are jeopardizing the safety of you and your family,” Duffy said in a statement.

Duffy accused the state of delaying an in-depth internal review, full driver accounting and revocations, despite federal compliance alerts.

Beyond the funding freeze, Duffy also warned the department could decertify Colorado’s full CDL program if the state does not meet requirements.

Colorado’s Division of Motor Vehicles paused new issuances and renewals of limited-term non-domiciled CDLs and learner permits last week, saying it will continue to do so until an audit confirms that U.S. standards are being met.

Duffy has moved nationwide to enforce CDL qualifications for hauling heavy loads or passengers. A summer audit expanded after an unauthorized foreign driver in Florida made an illegal U-turn and crashed, killing three.

Federal rules mandate an immigration status check before licensing. Audits uncovered lapses in such verifications across states.

New York received a 30-day ultimatum Dec. 12 to align with nondomiciled CDL rules or lose funding, with Duffy saying that 53 percent of its such licenses were improperly issued. The state’s DMV disputed the figures as fabricated.

In California, Duffy froze $160 million in October for widespread noncitizen licensing, and threatened to rescind issuance authority if Gov. Gavin Newsom defies emergency directives to halt and audit them. Since then, California has revoked approximately 21,000 CDLs.

Pennsylvania, Minnesota, Texas, and South Dakota have faced similar scrutiny. A June FMCSA investigation found noncompliance in California, Colorado, Pennsylvania, South Dakota, Texas, and Washington, prompting tightened non-domiciled CDL eligibility.

Almost 3,000 CDL providers were delisted from the federal registry Dec. 2 for illegal practices, with 4,500 more receiving warnings. Per reviews, approximately half of U.S. truck schools fail federal standards.

Recent incidents highlight the issue, including a deadly crash in Tennessee that was allegedly caused by an illegal immigrant from China who was allowed to illegally obtain a CDL.

The administration revoked the privileges of 9,500 drivers Dec. 11 for failing in their English proficiency, including cases from Washington and California.

American truckers have applauded the crackdown on noncitizen CDL licensing.

“My response is absolutely we can handle it because [unqualified foreign drivers] shouldn’t be on the road to begin with,” John Esparza, president and CEO of the Texas Trucking Association, told The Epoch Times last week.

Allan Stein and The Associated Press contributed to this report.