Highway Funding Held Hostage: New Bill Threatens 50% Cut for States Issuing Licenses to Non-Citizens Starting 2027

The “SAFE Driving Laws Act” is straightforward: it uses the threat of massive financial penalties to force states to change who they allow behind the wheel. Specifically, this legislation mandates that states must stop issuing standard or commercial driver’s licenses to anyone who cannot prove they are a U.S. citizen or a lawful permanent resident. If a state doesn’t comply, the federal government will withhold a whopping 50% of its main federal highway funding starting in fiscal year 2027. This bill isn't just about driver’s licenses; it’s a federal mandate leveraging infrastructure money to enforce immigration policy at the state level.

The Cost of Non-Compliance: Potholes and Project Delays

Let’s talk about that 50% cut. Federal highway dollars are what keep major road projects going, fund bridge repairs, and maintain the infrastructure you rely on every day for your commute or moving goods. Withholding half of those funds (specifically those allocated under sections 104(b)(1) and (2) of title 23, U.S. Code) is a nuclear option. For a state that decides to keep its current licensing practices—perhaps to ensure all residents, regardless of status, can drive legally, get insurance, and safely get to work—this penalty means hundreds of millions, possibly billions, of dollars vanish. Imagine your state suddenly having to delay the widening of a major bottleneck highway or postpone essential bridge maintenance for years. That’s the real-world impact of this financial coercion.

License Check: Who Gets Shut Out?

The core requirement for states to avoid the funding cut is to implement a law barring the issuance of standard and commercial licenses to anyone who can’t prove citizenship or lawful permanent residency. This means that even some legal residents—people with temporary work visas, those seeking asylum, or others with pending status changes who are otherwise authorized to be in the U.S.—could be denied a standard license, depending on how states interpret "lawful permanent resident." For a construction worker or a delivery driver who relies on a driver's license to earn a living, this change could severely impact their ability to work, even if they are legally residing and paying taxes in the country. This isn't just about undocumented individuals; it potentially creates hurdles for a wide range of legal non-citizens.

Mandatory Data Sharing: DHS Gets the Full Picture

Beyond the licensing rule, states must also agree to a broad data-sharing mandate. To comply, states cannot stop any local or state official from sharing “immigration enforcement information” with the Department of Homeland Security (DHS). The bill defines this information broadly as “any data related to a person’s citizenship or immigration status.” Crucially, it specifically includes the date, time, and location when someone is released from any detention center, jail, or prison facility. This effectively federalizes local law enforcement data related to immigration status and release timing, tying state compliance to local cooperation with federal immigration enforcement efforts. This means local police departments or sheriffs who might prefer to focus strictly on local crime without acting as federal immigration agents would be prevented from limiting their information sharing with DHS.

The Bottom Line: Forced Choices and Public Transparency

Starting in 2027, every state will be forced to choose between maintaining state control over who drives on their roads and receiving crucial federal money for those very roads. The Secretary of Transportation and the Secretary of Homeland Security are required to track and publish a public database showing which states are compliant and which are facing the 50% funding cut. For busy people, the biggest takeaway is that this bill ties immigration policy directly to the condition of your state’s roads. If your state decides to resist the federal mandate, you’ll likely feel the pinch through neglected infrastructure and longer, rougher commutes.