Court blocks $74 million New York highway cut

A federal appeals court ruled that the U.S. Department of Transportation cannot withhold nearly $74 million in highway funding from New York over the state’s refusal to revoke nearly 33,000 commercial driver’s licenses issued to immigrants. The court said the federal government could not penalize the state for failing to follow cancellation requirements that were not in place when the licenses were issued, and that the agency’s approach lacked fair notice. The Transportation Department has argued that licenses should not remain valid after drivers lose legal status, citing concerns about driver safety; one judge agreed with the ruling but criticized the majority for addressing more regulatory questions than necessary.