California Gov. Gavin Newsom is drawing sharp criticism after his administration extended thousands of commercial truck-driver's licenses for foreign nationals flagged in a federal audit, defying the Trump administration’s demand that the permits be revoked by Monday.
Transportation Secretary Sean Duffy warned Wednesday that California “does not have an extension” and that the deadline to revoke what he called “illegally issued, unvetted foreign trucker licenses” remains Monday, according to Fox Business reporting on his public post.
Duffy said California could lose nearly $160 million in federal transportation funding if the state fails to comply, Fox Business reported.
The California Department of Motor Vehicles, however, announced it was delaying cancellations until March 6, 2026, saying it needed additional time to avoid wrongly canceling drivers who may still be legally qualified, according to an Associated Press report published Wednesday.
The dispute centers on 17,299 “non-domiciled” commercial driver’s licenses that California issued to noncitizens, which state officials later said contained discrepancies tied to immigration and work authorization documentation, the Associated Press reported.
Federal officials say the audit found California allowed some commercial licenses to remain valid beyond the expiration of lawful presence or without adequate verification, and the Department of Transportation is warning that this creates a serious public safety concern, according to The Associated Press.
Newsom’s office has defended the delay as a due-process measure, but federal officials say the state is effectively using bureaucratic excuses to keep questionable licenses active.
The Associated Press reported that the Transportation Department has already withheld $40 million over the dispute and threatened additional penalties if California misses the Monday deadline.
The DMV’s extension also follows legal pressure from immigrant advocacy groups, including the Sikh Coalition and the Asian Law Caucus, which argue in court filings that many of the affected drivers may still be legally eligible and should not lose their livelihoods without individualized review, according to the Associated Press.
That lawsuit has become a flashpoint in the broader battle over immigration enforcement, state compliance, and federal leverage over taxpayer-funded transportation programs.
Duffy’s warning reflects the Trump administration’s wider push to tighten verification standards in programs that affect public safety, including commercial trucking, where drivers are entrusted with massive vehicles operating on crowded highways.
AP reported that immigrant truckers make up about 20 percent of the workforce nationwide, and only a small portion hold non-domiciled licenses designed for noncitizens who are legally present but do not maintain U.S. residency.
Trucking groups have generally supported removing unqualified drivers from the road while urging authorities to ensure enforcement is accurate, with calls for stronger oversight of licensing programs and commercial driving schools, the Associated Press reported.
Federal officials have pointed to highway safety concerns and serious incidents involving drivers whose authorization was questioned, arguing that states cannot treat commercial licensing as a political statement, the Associated Press reported.
Conservatives say the larger issue is why California issued and maintained commercial licenses tied to questionable or mismatched legal-status records in the first place.
The Trump administration argues states cannot unilaterally extend deadlines after federal audits identify compliance failures, especially when federal transportation dollars and public safety are at stake.
California officials have not publicly clarified whether they will reverse course before Monday or risk escalating penalties.
The standoff now sets up a major test of whether the federal government can force blue-state officials to comply with lawful immigration-linked verification requirements in a critical public safety industry.
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