The Red Light Act would withhold all federal highway funding from states that issue driver's licenses or identification cards to people who are unlawfully present in the United States. Starting October 1, 2026, the Secretary of Transportation would withhold 100 percent of highway apportionment funds from any "noncompliant" state under this definition. If a state changes its law or policy to stop issuing such identification before the end of the fiscal year, withheld funds would be released to that state. Any funds that remain withheld would be redistributed to compliant states based on their share of total highway funding. If a state later returns to issuing identification to unlawfully present individuals, it would lose federal highway funding again.