U.S. Transportation Secretary Sean Duffy warned Sunday that he is about make good on a threat to revoke millions in federal funds for California because he says the state is illegally issuing commercial driver’s licenses to noncitizens.

In an appearance on Fox News Channel’s “Sunday Morning Futures,” Duffy said Gov. Gavin Newsom has refused to comply with Department of Transportation rules that require the state to stop issuing such licenses and review those already issued.

“So, one, I’m about to pull $160 million from California,” Duffy said. “And, as we pull more money, we also have the option of pulling California’s ability to issue commercial driver’s licenses.”

Eva Spiegel, a spokesperson for the California Department of Motor Vehicles, said the Trump administration “has no legitimate basis” to withhold federal highway transportation funds.“The federal government previously allowed commercial driver’s licenses for asylum seekers and refugees and on September 26 announced emergency regulations to cease this practice that went into effect on September 29. California is in compliance with these regulations and will remain in compliance with federal law,” Spiegel said via email.

When Duffy threatened to revoke funds last month, a spokesperson for Newsom dismissed the attack and noted that CDL holders from California have a significantly lower rate of crashes than both the national average and that of Texas, which is the only state with more licensed commercial drivers.

Last month the Transportation Department tightened commercial driver’s license requirements for noncitizens after three fatal crashes that officials said were caused by immigrant truck drivers. Only three specific classes of visa holders will be eligible for CDLs under the new rules and states must verify an applicant’s immigration status in a federal database. The licenses will be valid for up to one year unless the applicant’s visa expires sooner.

Duffy said last month that California should never have issued 25% of 145 licenses investigators reviewed. He cited four California licenses that remained valid after the driver’s work permit expired — sometimes years after. The state had 30 days to come up with a plan to comply or lose funding.

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