​​​​​​​WASHINGTON

The Trump administration warned states Thursday that they risk losing federal transportation funding if they fail to comply with federal immigration laws or maintain diversity, equity and inclusion (DEI) programs.​

“Federal grants come with a clear obligation to adhere to federal laws,” Department of Transportation (DOT) Secretary Sean Duffy said in a letter to grant recipients; “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.”​

The agency cited instances where states allegedly issued driver's licenses to undocumented immigrants or declined to cooperate with Immigration and Customs Enforcement (ICE) investigations, warning such actions could lead to funding cuts.​

The letter indicated that DEI-related hiring or funding practices based on "prohibited classifications" may breach grant terms.

"Recipients of DOT financial assistance must ensure that the personnel practices (including hiring, promotions, and terminations) within their organizations are merit-based and do not discriminate based on prohibited categories," it said.