Federal highway funds withheld from states issuing licenses to unlawful aliens.

The bill, known as the Red Light Act, mandates the withholding of federal highway funds from states that issue driver's licenses or identification cards to individuals unlawfully present in the United States. This withholding applies to each October 1, starting from 2026, and affects funds apportioned under specific sections of federal law. If a state previously received these funds but later becomes noncompliant, the funds will be withheld starting the fiscal year after the state's noncompliance. Funds withheld from noncompliant states are redistributed to compliant states.

Federal highway funds withheld from states issuing licenses to unlawful aliens.

The bill, known as the Red Light Act, mandates the withholding of federal highway funds from states that issue driver's licenses or identification cards to individuals unlawfully present in the United States. This withholding applies to each October 1, starting from 2026, and affects funds apportioned under specific sections of federal law. If a state previously received these funds but later becomes noncompliant, the funds will be withheld starting the fiscal year after the state's noncompliance. Funds withheld from noncompliant states are redistributed to compliant states.