U.S. Transportation Secretary Sean Duffy warned on Sunday that he is prepared to follow through with his threat to revoke $160 million in federal funds for California, as he claims the state is illegally issuing commercial driver’s licenses to noncitizens.

In an interview on Fox News Channel's Sunday Morning Futures, Duffy noted that Governor Gavin Newsom has disregarded Department of Transportation mandates that require the state to stop issuing these licenses and conduct a review of those already granted.

“So, one, I’m about to pull $160 million from California,” Duffy stated. “And, as we pull more money, we also have the option of pulling California’s ability to issue commercial driver’s licenses.”

A spokesperson for Newsom referred requests for comment to the state’s transportation agency, which did not respond immediately.

California has previously defended its licensing practices, mentioning that commercial driver’s license (CDL) holders in the state have a significantly lower crash rate compared to both the national average and that of Texas, which has the highest number of licensed commercial drivers.

Last month, the Department of Transportation tightened CDL requirements for noncitizens following several fatal crashes allegedly caused by immigrant truck drivers. Under the new rules, only specific visa holders can obtain these licenses, and states must verify the applicant's immigration status through a federal database.

Duffy highlighted that California allegedly issued 25% of the licenses reviewed incorrectly, with some licenses remaining valid even after the driver's work permit expired. The audit revealed significant failures in California's enforcement of safety regulations, with Duffy asserting that the state has unlawfully granted thousands of licenses to noncitizens.

“So you have 60,000 people on the roads who shouldn’t have licenses,” he said. “They’re driving fuel tankers, they’re driving school buses, and we have seen some of the crashes on American roadways that come from these people who shouldn’t have these licenses.”

The investigation was initiated following a crash in Florida involving a driver who was in the country illegally, leading to calls for a national audit of commercial drivers' licenses.