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Feds withholding $73 million in federal highway funds from New York. Here's why.

By
Jesse Zanger
Managing Editor, CBS New York
Jesse Zanger is the managing editor of CBSNewYork.com. Jesse has previously worked for the Fox News Channel and Spectrum News NY1. He covers regional news around the Tri-State Area, with a particular focus on breaking news and extreme weather.
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Jesse Zanger,
Marcia Kramer
Marcia Kramer
Marcia Kramer
Marcia Kramer joined CBS News New York in 1990 as an investigative and political reporter. Prior to CBS2, she was the City Hall bureau chief at the New York Daily News.
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Marcia Kramer

/ CBS New York

Federal funding for highways in New York state has hit a bump in the road. 

The government is withholding $73 million in highway funds from New York, Transportation Secretary Sean Duffy said Thursday. The funds are earmarked for road and bridge repairs. Sources say it will mean less money to repave roads, upgrade aging infrastructure, and repair potholes. 

The $73,502,543 the federal government is withholding represents 4% of New York's federal highway dollars.   

The move comes after  found more than half of the state's commercial trucking licenses issued to foreigners were issued illegally. The audit of 200 sampled records found that 107 Commercial Driving Licenses issued to foreigners -- more than 53% -- were issued illegally. 

In December, Duffy said he was giving New York 30 days to get in compliance. Those 30 days have since passed.   

"I promised the American people I would hold any state leader accountable for failing to keep them safe from unvetted, unqualified foreign drivers. I'm delivering on that promise today by refusing to fund Governor Hochul's dangerous, anti-American policies," Duffy said. "My message to New York's far left leadership is clear: families must be prioritized on American roads." 

Federal Motor Carrier Safety Administrator Derek Barrs also spoke out about the decision. 

"FMCSA's mission is safety. That means ensuring that every commercial driver on the road is properly vetted and qualified. New York's continued refusal to fix these failures undermines that mission, and we will not allow federal dollars to support a system that falls short of the law," Barrs said. 

A spokesperson for Hochul called the charges "baseless." 

Latest move in ongoing funding war

The decision to withhold the federal highway funds is just the latest volley by Duffy and the Trump administration in a lengthy back-and-forth. 

It all began when the Trump administration tried to shut down New York City's congestion pricing program. That was followed by an attempt to stop funding for the Hudson River tunnels. 

Courts put a stop to both those efforts. 

2nd Avenue subway funding to be released, however 

The move to withhold federal highway funds came as the Department of Transportation for the Second Avenue Subway it had frozen. The MTA and state of New York sued over the freeze. 

"We took the Trump Administration to court after they illegally froze funding for the Second Avenue Subway. Today, they backed down. The freeze is over. For East Harlem and every New Yorker who relies on our subways, release our money immediately," . 

"After a nonsensical and illegal delay by the Trump administration, which forced the MTA to take them to court, an appearance before the judge finally got them to come to their senses and lift this damaging funding blockade. Now the transformative and long-needed extension of the Second Avenue Subway can get back on track to deliver new service to countless New York straphangers from East Harlem, Uptown, the Bronx, and beyond," Senate Minority Leader Chuck Schumer said in a statement.

"Manhattan residents and commuters have waited long enough for the Second Avenue Subway extension, which will cut travel times, create new opportunities, and provide better connections, particularly in East and Central Harlem. I am pleased that USDOT has decided to follow the law and finally restart long-delayed reimbursements so that MTA can deliver the modern and accessible transit system that New Yorkers deserve," Sen. Kirsten Gillibrand said in a statement. ""The Trump administration has used New Yorkers as political pawns by holding up federal dollars for important projects and harming the livelihoods of our union workers."

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