⚖ Oral Arguments, with Context

New York asks the Second Circuit to undo a federal decision to withhold about seventy-three million dollars in highway funds. In a 2025 audit of 200 non-domiciled commercial driver's licenses issued by New York, federal inspectors found that 101 had expiration dates later than the drivers' documents showing lawful presence. The motor carrier agency says the old federal licensing rules barred that mismatch; New York says they only required an unexpired document when a driver applied. After New York disputed the agency's demanded corrections, the agency found the state in substantial noncompliance and ordered a four-percent funding penalty beginning in fiscal year 2027. The court must decide what the old rules meant and whether that funding decision can stand. A newer rule states an explicit expiration limit, but both sides agree it does not settle this dispute under the prior rules. Anthony Raduazo, a New York assistant solicitor general, will ask the court to set aside the decision.

State of New York v. United States Department of Transportation (No. 26-1097) — U.S. Court of Appeals for the Second Circuit, argued September 28, 2026.