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A federal appeals court ruled the Transportation Department wrongly withheld New York highway funding

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A federal appeals court ruled Friday that the U.S. Transportation Department wrongly withheld nearly $74 million in highway funding from New York after the state declined to revoke nearly 33,000 questionable commercial driver’s licenses issued to immigrants. The court said rules requiring cancellation when drivers lost legal status were not then in place.

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The three-judge panel of the 2nd U.S. Circuit Court of Appeals said the Federal Motor Carrier Safety Administration, part of the Transportation Department, acted in a manner that was “arbitrary, capricious, or contrary to law.” Cedar News reported that an audit found 107 of 200 records reviewed violated federal requirements. Authorities said New York had issued licenses valid for eight years regardless of how long a driver’s visa remained valid. Transportation Secretary Sean Duffy had tightened rules governing when immigrants could obtain commercial licenses.

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