Feds Withhold $160 Million From California Over Illegal Truck Licenses

The U.S. Department of Transportation is withholding $160 million in federal highway funds from California. Officials say the state has not revoked thousands of commercial driver's licenses issued unlawfully. Federal authorities allege California failed to follow proper procedures. This resulted in over 17,000 licenses being issued to commercial truck and bus drivers without required legal checks. The withheld money is part of a federal grant program. It will be held back until California addresses the problem and provides a corrective plan. State officials have acknowledged the issue. They say they are now working to revoke the improperly issued licenses and prevent future errors. The dispute centers on federal rules requiring states to check applicants' driving histories from all states where they have held licenses. The federal government says California's system did not perform these complete checks for several years.