Court Orders Trump Administration to Return New York Highway Funds
The 2nd US Circuit Court of Appeals ruled the Trump administration overstepped its authority by withholding $73.5 million in highway funding from New York.
The U.S. Court of Appeals for the Second Circuit ruled on Friday that the Trump administration overstepped its legal authority by withholding $73.5 million in highway funding from New York. The U.S. Transportation Department froze the funds in April after New York refused to revoke commercial driver licenses issued to foreign drivers, which the federal government claimed were issued illegally.
The court found that the decision to freeze the money departed from regulatory text and violated fair notice principles. New York argued that revoking the licenses would disrupt key industries and cause bus driver shortages.
This ruling is part of a broader series of legal disputes between the Trump administration and several states, including California, regarding the withholding of transportation funds. Other recent court actions have forced the U.S. Transportation Department to maintain funding for the Hudson Tunnel rail project and unfreeze $3 billion for rail projects in Chicago.
