Colorado Confronts $24M Funding Reduction Due to Illegal Commercial Driver’s Licenses

The head of the U.S. Department of Transportation has issued a stern warning to the state of Colorado, threatening to withhold $24 million in federal funding. This ultimatum stems from what he describes as a sluggish response to significant violations of federal commercial driver’s license regulations.

Transportation Secretary Sean Duffy highlighted findings from a nationwide audit conducted in October, revealing that approximately 22% of commercial licenses issued by Colorado to immigrants were granted illegally. Many of these licenses were reportedly given to Mexican nationals, a practice that contravenes federal law.

Duffy accused Colorado officials of “slow walking” the necessary actions to rectify the situation. He stated that the state has not completed a comprehensive audit, failed to provide a full accounting of the affected drivers, and has not revoked the invalid licenses, despite being informed of their non-compliance.

In response, Colorado Governor Jared Polis characterized the situation as a case of “crossed wires.” He asserted that had Duffy reached out, he would have learned that the state has already completed its investigation and is currently conducting a final review of the findings. Polis indicated that letters are expected to be sent out this week to those CDL holders whose credentials were improperly issued.

Polis emphasized that the state is acting swiftly to revoke these licenses, aiming to address the issue promptly.

In addition to the funding threat, Duffy pointed out that the Transportation Department has the authority to decertify Colorado’s entire CDL program if the state does not take immediate action. “Every day that goes by is another day unqualified, unvetted foreign truckers are jeopardizing the safety of you and your family,” Duffy stated.

Governor Polis, a two-term Democrat, has found himself at odds with the Trump administration in recent months. Tensions escalated recently when the administration denied disaster declaration requests following wildfires and flooding earlier this year. Last week, Polis also criticized plans to dismantle a federal climate research lab located in Colorado.

As reported by The Denver Post, Colorado’s Division of Motor Vehicles has paused the issuance and renewal of term-limited non-domiciled CDLs and commercial learner’s permits indefinitely. This pause will remain in effect pending an audit of all such licenses to ensure compliance with federal regulations.

Duffy has previously threatened federal highway funding for other states as part of his efforts to ensure that truck and bus drivers are qualified to transport either passengers or heavy cargo safely.

New York was recently identified as the fourth state run by a Democratic governor to be publicly called out for similar issues. Concerns have also been raised regarding practices in California, Pennsylvania, and Minnesota. Letters have also been sent to Republican-led states like Texas and South Dakota.

Duffy initiated the review this summer, but it gained prominence following a tragic incident in Florida where an unauthorized truck driver caused a crash that resulted in three fatalities in August.

The regulations regarding these licenses have been in place for years. The federal audit revealed that in some cases, states may not have even verified a driver’s immigration status before issuing a license.

Since Duffy began addressing the issue in California, that state has revoked approximately 21,000 commercial driver’s licenses that were issued improperly.

Topics
Mergers & Acquisitions
Commercial Lines
Business Insurance
Personal Auto

The head of the U.S. Department of Transportation has issued a stern warning to the state of Colorado, threatening to withhold $24 million in federal funding. This ultimatum stems from what he describes as a sluggish response to significant violations of federal commercial driver’s license regulations.

Transportation Secretary Sean Duffy highlighted findings from a nationwide audit conducted in October, revealing that approximately 22% of commercial licenses issued by Colorado to immigrants were granted illegally. Many of these licenses were reportedly given to Mexican nationals, a practice that contravenes federal law.

Duffy accused Colorado officials of “slow walking” the necessary actions to rectify the situation. He stated that the state has not completed a comprehensive audit, failed to provide a full accounting of the affected drivers, and has not revoked the invalid licenses, despite being informed of their non-compliance.

In response, Colorado Governor Jared Polis characterized the situation as a case of “crossed wires.” He asserted that had Duffy reached out, he would have learned that the state has already completed its investigation and is currently conducting a final review of the findings. Polis indicated that letters are expected to be sent out this week to those CDL holders whose credentials were improperly issued.

Polis emphasized that the state is acting swiftly to revoke these licenses, aiming to address the issue promptly.

In addition to the funding threat, Duffy pointed out that the Transportation Department has the authority to decertify Colorado’s entire CDL program if the state does not take immediate action. “Every day that goes by is another day unqualified, unvetted foreign truckers are jeopardizing the safety of you and your family,” Duffy stated.

Governor Polis, a two-term Democrat, has found himself at odds with the Trump administration in recent months. Tensions escalated recently when the administration denied disaster declaration requests following wildfires and flooding earlier this year. Last week, Polis also criticized plans to dismantle a federal climate research lab located in Colorado.

As reported by The Denver Post, Colorado’s Division of Motor Vehicles has paused the issuance and renewal of term-limited non-domiciled CDLs and commercial learner’s permits indefinitely. This pause will remain in effect pending an audit of all such licenses to ensure compliance with federal regulations.

Duffy has previously threatened federal highway funding for other states as part of his efforts to ensure that truck and bus drivers are qualified to transport either passengers or heavy cargo safely.

New York was recently identified as the fourth state run by a Democratic governor to be publicly called out for similar issues. Concerns have also been raised regarding practices in California, Pennsylvania, and Minnesota. Letters have also been sent to Republican-led states like Texas and South Dakota.

Duffy initiated the review this summer, but it gained prominence following a tragic incident in Florida where an unauthorized truck driver caused a crash that resulted in three fatalities in August.

The regulations regarding these licenses have been in place for years. The federal audit revealed that in some cases, states may not have even verified a driver’s immigration status before issuing a license.

Since Duffy began addressing the issue in California, that state has revoked approximately 21,000 commercial driver’s licenses that were issued improperly.

Topics
Mergers & Acquisitions
Commercial Lines
Business Insurance
Personal Auto