New York officials are taking the federal government to court after more than $73 million in highway funding was abruptly pulled, setting up a legal fight with major implications for infrastructure projects statewide.
Attorney General Letitia James and Gov. Kathy Hochul announced Friday that they have filed a lawsuit seeking to restore the funding, which was canceled by the U.S. Department of Transportation.
State officials say the move stems from a dispute over commercial driver’s licenses, with federal authorities pressuring New York to revoke certain licenses issued to non-citizen drivers. New York has refused, arguing those licenses were issued legally and in full compliance with state and federal rules.
James called the funding cut both unlawful and dangerous, warning it could jeopardize critical road and bridge projects.
“The administration cannot promise funding to our state and then abruptly yank it away,” she said. “By cancelling this funding, the federal government is putting jobs and communities at risk.”
Hochul framed the decision as political retaliation, saying the state has consistently met federal standards for issuing commercial driver’s licenses.
“Ripping away money that goes towards critical safety upgrades on our roads is reckless and it is illegal,” she said. “We will fight — and win — in court to restore this funding.”
According to the state, the Department of Transportation announced April 16 it would withhold more than $73.5 million in already approved funding and could block an additional $147 million annually in future allocations.
State officials argue the federal government is overstepping its authority by attempting to force policy changes through funding threats. The lawsuit contends the decision is arbitrary, violates established law, and disrupts programs designed by Congress to support transportation infrastructure.
New York has filed its challenge in the U.S. Court of Appeals for the Second Circuit and is seeking expedited review to prevent delays to ongoing and planned projects.
If the funding is not restored, officials warn it could stall infrastructure work, increase project costs and ripple through local economies that depend on transportation investment.
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