States could lose infrastructure funding over immigration, DEI: Transportation secretary

Transportation Secretary Sean Duffy warned states Thursday that they will lose federal funding for roads, bridges and other infrastructure projects if they continue to foster diversity, equity and inclusion (DEI) programs; impede President Trump's immigration enforcement efforts; or defy other directives from the administration.

"Federal grants come with a clear obligation to adhere to federal laws," Duffy said in a statement released alongside a letter that he sent to all recipients of Department of Transportation (DOT) funding. "It shouldn’t be controversial — enforce our immigration rules, end anti-American DEI policies and protect free speech."

"These values reflect the priorities of the American people, and I will take action to ensure compliance," he added.

Duffy stressed in the letter that federal funding recipients, including states and local governing bodies, "entered into legally enforceable agreements with the United States Government and are obligated to comply fully with all applicable Federal laws and regulations."

The Transportation chief specifically highlighted anti-discrimination laws and the Supreme Court's 2023 ruling against affirmative action as the basis for pulling funds from states with DEI programs, and he wrote that providing driver's licenses to migrants without legal status or hampering Immigration and Customs Enforcement investigations also will be considered grounds for withholding funds.

DOT will "award and continue to provide Federal financial assistance only to those recipients who comply with their legal obligations," Duffy wrote.

The letter comes as the Trump administration has moved to curtail state endeavors that go against the president's agenda. Maine has faced threats of losing federal dollars unless the state bars transgender athletes from competing in girls' sports. The Trump administration similarly has attempted to claw back money from schools and colleges with DEI programs, though a judge intervened Thursday to block that effort.

Duffy encouraged states to seek guidance from his agency if they are unsure whether they are violating DOT's funding policies and underscored that "proactive engagement is strongly advised to prevent inadvertent noncompliance."

"DOT remains committed to advancing a transportation system that serves the public interest efficiently and unleashes economic prosperity and a superior quality of life for American families," he wrote.

"This mission depends upon your strict adherence to the legal framework governing our partnership, and I trust you will take all necessary steps to comply with Federal law and satisfy your legal obligations," the secretary added.