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Trump cannot withhold highway funding from New York, court says

By Thomson Reuters Nov 13, 2026 | 10:20 AM

Nov 13 (Reuters) – A federal appeals court on Friday invalidated ​the Trump ‌administration decision in April to withhold $73.5 million in highway funding from ‌New ​York over ⁠the state’s decision ⁠not to revoke some commercial driver licenses.

The US Transportation Department ​cited an audit that found ⁠New York ⁠had been routinely ​issuing commercial driver licenses ​to foreign drivers illegally ‌in withholding the funding. The US Court of Appeals ⁠for the Second Circuit said USDOT’s decision went beyond ⁠its ‌legal authority ⁠and “runs afoul of ​fair ‌notice principles, departs ​from the ⁠regulatory text, and underestimates the complexity of its supposedly ‘common sense’ requirement.”

(Reporting by David ​Shepardson)