U.S. Transportation Secretary Sean Duffy threatened to withhold up to $160 million in federal funds from California, claiming the state is illegally issuing commercial driver’s licenses (CDLs) to noncitizens.

Duffy said tens of thousands of drivers, including those operating fuel tankers and school buses, hold licenses they should not have, citing past crashes caused by improperly licensed drivers.

California officials defended their practices, noting compliance with new federal regulations and low crash rates among CDL holders, and argued the Trump administration has no legitimate basis to withhold funds, the AP has reported.

The dispute follows nationwide CDL audits and tightened federal rules limiting eligibility for noncitizens to only specific visa holders.