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With $128 million at stake, state denies feds’ claims of illegally issuing commercial licenses

Illinois Secretary of State officials are denying findings by the federal government the agency improperly issued commercial driver’s licenses to people without permission to be in the United States.

The U.S. Department of Transportation has threatened to block $128 million in highway funding if the state is found to be noncompliant.

The controversy arose after the Federal Motor Carrier Safety Administration conducted a widespread audit of commercial driver’s license applications by noncitizens or permanent residents. Twenty-nine out of 150 commercial licenses in Illinois the agency reviewed were issued to individuals not authorized to be in the U.S., officials announced Feb. 17, giving the state a month to respond.

On Thursday, Driver Services Director Kevin Duesterhaus said in a letter to FMCSA the state had followed federal rules and that nothing the government presented “would justify potentially cutting the $128 million in federal highway funding that Illinois receives.”

Federal regulators said the agency had issued commercial driver’s licenses to numerous people whose Employment Authorization Documents (EAD) allowing them to be in the U.S. had expired, and also had failed to verify if some applicants were in the country legally.

“Illinois is an important partner in FMCSA’s mission to reduce crashes, injuries and fatalities involving large trucks and buses,” Administrator Derek D. Barrs wrote.

Secretary of state officials reviewed the 29 cases and responded that the government had ignored an exemption extending EADs for 540 days as a result of pandemic backlogs.

Regarding another allegation that the agency had not made copies of immigration documents presented by applicants, Duesterhaus said federal regulations at the time did not require such records.

The federal government has issued similar reprimands to 23 other states including New York and California.

State officials noted Illinois has stopped issuing commercial driver’s licenses to non-domiciled applicants since FMCSA announced new regulations in September.

“We can see the actions by the Trump administration taking their toll on our truckers and our farmers, both of whom are essential to Illinois’ economy,” Secretary of State Alexi Giannoulias said in a statement.

Transportation Secretary Sean Duffy said, “I need our state partners to understand that they work for the American people, not illegal immigrants … operating massive big rigs without the proper qualifications.”

Illinois has faced other cuts to federal funding from the White House. On Friday, the Chicago Transit Authority sued the Trump administration over its withholding about $2 billion to extend the Red Line.