PolicyBrief
S. 3773
119th CongressFeb 4th 2026
Enforce Immigration or Lose Transportation Act
IN COMMITTEE

This bill threatens to withhold federal highway funds from states that fail to enforce federal immigration laws regarding driver's licenses and information sharing with federal authorities.

Tom Cotton
R

Tom Cotton

Senator

AR

LEGISLATION

Highway Funds on the Line: New Bill Ties Federal Road Dollars to State Immigration Enforcement

Imagine your morning commute getting a lot bumpier because your state and the federal government are in a standoff over immigration. The 'Enforce Immigration or Lose Transportation Act' proposes a high-stakes trade-off: states must strictly follow federal immigration protocols or face massive cuts to their highway budgets. Starting October 1, 2026, any state that doesn't play by these specific rules could lose 5% of its federal transportation funding in the first year, with that penalty doubling to 10% every year after. For a state planning a billion-dollar bridge repair or a major highway expansion, a 10% hit isn't just a rounding error—it’s the kind of shortfall that puts construction crews out of work and keeps potholes unfilled.

The Compliance Checklist

To keep the cash flowing, states have to meet three main requirements under Section 3 of the bill. First, they can’t have 'sanctuary' style policies that restrict local officials from sharing citizenship info with the Department of Homeland Security. Second, they must stop issuing driver's licenses or ID cards to anyone who can’t provide proof of lawful immigration status, aligning with the REAL ID Act of 2005. Finally, states have to honor ICE detainers, meaning if federal authorities ask a local jail to hold someone for immigration reasons, the state must comply. Every year, states would have to send a formal certification to the Secretary of Transportation proving they are following these rules, backed up by federal audits to make sure nobody is fudging the numbers.

Potholes and Paperwork

The real-world impact here hits two very different groups. For the average commuter or trade worker, a state’s refusal to comply could mean that the 'Safe Roads' project in their town gets shelved because the federal matching funds vanished. On the flip side, for immigrant communities and those working in industries like agriculture or construction, the bill creates a much higher barrier to getting a driver's license. If a state changes its licensing laws to avoid losing millions in road money, thousands of people who currently drive to work under state-specific programs could suddenly find themselves without legal ID, making it harder to get to jobs, transport kids, or buy insurance.

The Enforcement Toll Road

This bill frames the issue as a matter of national security and road safety, arguing in Section 2 that vetting drivers more strictly makes everyone safer. However, the practical challenge lies in the 'Medium' level of vagueness regarding what counts as 'restricting' information. A local police department might find itself caught between a state privacy law and this federal funding requirement, risking a massive budget hole if they guess wrong. Because the Secretary of Transportation has the final say on compliance, there’s also the risk that infrastructure funding—something usually seen as a basic public service—becomes a political lever used to force states into line on immigration policy.