New York Attorney General Letitia James and Gov. Kathy Hochul formally sued the federal government for cancelling more than $73.5 million in highway funding for New York.

Filed on April 24, the lawsuit follows the U.S. Department of Transportation announcement from April 16 that it would withhold the already approved highway funding after New York refused the DOT’s demands to revoke certain commercial driver’s licenses held by noncitizen drivers. It also threatened to withhold $147 million annually in the future.

“Once again, New York is facing devastating federal cuts for nothing more than political payback,” Hochul said in a press release. “Here’s the truth: New York has always followed federal rules when issuing CDLs, something even the previous Trump Administration verified year after year.”

All drivers who are granted a CDL in New York state must have legal immigration status and pass strict requirements, including a driving and a written test. In a press release, James said that the cancellation of the funding is an attempt to coerce New York into canceling thousands of valid licenses.

“New Yorkers depend on safe, reliable roads and bridges to get to work, take their kids to school, and keep our economy moving. The administration cannot promise funding to our state and then abruptly yank it away,” said James in a press release. “By cancelling this funding, the federal government is putting jobs and communities at risk. New Yorkers are counting on these investments, and we will not let the president jeopardize our communities’ safety. My office is taking this administration to court to ensure New York gets every dollar it is owed.”

The funding would be used for road maintenance, safety improvements and infrastructure upgrades. Without it, transportation projects could be cancelled or critically delayed, and local economies across the state could be harmed, according to James’s office. A resulting bus driver shortage could disrupt industries that rely heavily on commercial drivers, also impacting schools and families.

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

Federal Motor Carrier Safety Administration administrator Derek Barrs claims the federal government is withholding the money to prevent unqualified and unsafe drivers on the road.

“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 in a Department of Transportation press release.

James filed a petition for review in the U.S. Court of Appeals for the Second Circuit, asking to overturn the DOT’s decision and return the funding to New York. They also plan to seek an expedited decision before the funding gets disrupted.

In February, New York and New Jersey sued the Trump administration for illegally withholding $15 billion in federal funding for the Gateway project, which would build new tunnels and repair the Hudson River rail crossing between northern New Jersey and New York City.

“Ripping away money that goes towards critical safety upgrades on our roads is reckless and it is illegal. Standing with Attorney General James, we will fight — and win — in court to restore this funding and ensure that o