New York Loses $74M Over Licenses

The funding cut follows an audit that uncovered significant problems with New York's process for issuing commercial licenses to non-residents with expired work authorizations.

Duffy stated that the state's refusal to reassess nearly 33,000 'questionable' licenses poses a serious safety and security risk.

Governor Kathy Hochul has vowed to 'fight back' against the decision, which she described as a targeted attack on the state's immigrant community.

The dispute is the latest clash between the Trump administration and 'blue' states over immigration enforcement and federal oversight.