New Bill Threatens Police Funding for States That Issue Driver's Licenses to Undocumented Residents

This bill, officially called the “Stop Greenlighting Driver Licenses for Illegal Immigrants Act of 2025,” aims to use federal funding as leverage to stop states from issuing driver's licenses to individuals who cannot prove they are legally present in the U.S. It also targets states that restrict local law enforcement from sharing immigration status information with the Department of Homeland Security (DHS).

Essentially, this legislation puts states on notice: if they choose to issue these licenses, or if they have policies that limit the flow of immigration enforcement information to DHS, they risk losing a crucial source of federal money. For busy people, this is a policy that hits two major areas: local safety funding and who gets to legally drive on the road.

The Financial Hammer: Bye-Bye Byrne Grants

The core of the bill is a financial penalty tied to the Edward Byrne Memorial Justice Assistance Grant Program funds—often just called Byrne Grants. These grants are a big deal; they fund everything from local police training and equipment to drug task forces and crime prevention programs in your city. The bill (Sec. 3) states that if a state issues even one driver’s license without proof of lawful presence, or if it restricts local officials from sharing “Immigration Enforcement Information” (which includes details about a person’s immigration status, release date, and location), that state has 30 days to return all of its unused Byrne Grant funds to the U.S. Treasury.

Imagine your local police department was counting on that grant money for new body cameras or a community outreach program. If your state’s DMV issues a license to someone who doesn’t meet the federal requirement, that funding is pulled almost instantly. Furthermore, the state is banned from receiving any future Byrne Grants until it changes its laws to comply with both the license restriction and the mandatory data sharing with DHS. This isn't just a slap on the wrist; it’s a direct hit to local law enforcement budgets, forcing states to choose between their current license policies and critical public safety funding.

Who Gets to Drive, and Who Shares the Data?

For the average person, the most visible impact will be on the road. States that currently issue licenses regardless of immigration status—often citing goals like increased road safety (since licensed drivers are tested and insured) or economic necessity—will be forced to reverse course to save their federal funding. This means that individuals who rely on driving for work, like construction workers or service industry staff, would lose their access to a legal driver’s license, likely increasing the number of uninsured or unlicensed drivers on the road in those states.

On the data side, the bill requires states to allow local officials to freely share “Immigration Enforcement Information” with DHS. This provision overrides any local or state policies designed to limit cooperation with federal immigration efforts. The bill defines this information broadly (Sec. 2), including not just status but also the date, time, and place someone was released from a detention facility. This means local police departments would be mandated to act as a direct data pipeline to federal enforcement, whether they want to or not. For local governments, this provision removes their ability to set their own policies regarding the scope of their cooperation with federal agencies.