This bill ties federal highway funding to state compliance with immigration enforcement policies. Specifically, it withholds a portion of federal transportation money from any state that: fails to require proof of lawful presence when issuing driver's licenses, restricts information sharing with federal immigration authorities about people's citizenship status, or refuses to cooperate with federal immigration detainers. The penalty starts at 5 percent of a state's federal highway funds in the first year of noncompliance and increases to 10 percent in subsequent years; however, states can recover withheld funds if they achieve compliance before the fiscal year ends. States would be required to annually certify their compliance to the Secretary of Transportation, beginning October 1, 2026, and the federal government would conduct audits to verify adherence to these requirements.
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