United StatesFederal highway funds would be withheld from states with certain ID policies
Beginning October 1, 2026, states with certain ID policies would lose all funding from three specified federal highway programs unless they change those policies.
What it does
A state that allows people unlawfully present in the United States to receive driver’s licenses or other ID would have all funds from three specified federal highway programs withheld.
If the Secretary finds that a state has changed its ID policy before the fiscal year ends, the state would get back withheld funds still available. Other unreturned funds would be shared among states that comply.
If a state receives released funds and later allows people unlawfully present in the United States to get driver’s licenses or other ID, the Secretary would withhold the specified highway funds again.
Argument forThe funding rule could encourage states to change their ID policies, while states that comply could receive funds withheld from other states.
Argument againstStates could lose major federal highway funds, which might leave less money for transportation needs if they keep allowing these residents to get IDs.
More detail
The Transportation Secretary would withhold all funds covered by the measure from a state that meets the bill’s definition of noncompliant. The rule covers funds apportioned to states under three specified federal highway funding programs. A state is noncompliant if its law or policy allows a person unlawfully present in the United States to receive a driver’s license or other identification card. The Secretary would withhold the funds on October 1, 2026, and each October 1 after that.
The Secretary would release remaining withheld funds if the state stops meeting the bill’s definition of noncompliant, and would redistribute funds that remain withheld after the fiscal year. These rules apply to funds withheld from a noncompliant state under the bill’s proposed withholding provision. The Secretary must determine that the state is no longer noncompliant before the last day of the fiscal year for which its funds were withheld. Funds that are not released would go to states that are not noncompliant, in proportion to their shares of the specified highway funds. The Secretary would release eligible funds on the day of the determination. Remaining funds would be redistributed on the first October 1 after the fiscal year for which they were withheld.
The Secretary would again withhold the specified funds if a state becomes noncompliant after receiving released funds. The rule applies to a state that previously received funds released under the proposed release provision. This applies when a state that received released funds later becomes noncompliant under the bill’s definition. Withholding would apply for the fiscal year beginning after the state becomes noncompliant and each fiscal year after that.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 16Introduced in SenateLatest
- Sep 16Read twice and referred to the Committee on Environment and Public Works.Introduced
TransportationImmigrationConsumer Protection