Key Takeaways
- Transportation Secretary Sean Duffy warned DOT funding recipients against diversity, equity, and inclusion practices, asserting they violate federal law.
- Grantees must cooperate with ICE and ensure subcontractors hire legally permitted workers or risk losing funding.
- Duffy’s actions align with a broader effort to reverse previous administration policies and prioritize projects under a new regulatory framework.
Policy Alert for DOT Funding Recipients
In a recent communication dated April 24, Transportation Secretary Sean Duffy issued a warning to recipients of federal transportation funding. He highlighted that engaging in diversity, equity, and inclusion (DEI) practices could breach federal law. Duffy emphasized that funding recipients are required to cooperate with U.S. Immigration and Customs Enforcement (ICE) and other federal officials. Non-compliance could result in severe penalties, including the loss of federal transportation funding.
Duffy’s letter stated, “It is the policy of the Department to award and to continue to provide Federal financial assistance only to those recipients who comply with their legal obligations.” The Department of Transportation (DOT) is prepared to audit grantees, and any funding found to be used for impermissible purposes could be reclaimed.
His directive specifically addressed cases where grantees failed to assist ICE or had issued driver’s licenses to individuals unlawfully residing in the U.S. He cautioned that such actions could result in both civil and criminal liabilities. Duffy advised transportation agencies to engage with DOT representatives to confirm compliance with the new guidelines.
The implications of Duffy’s message have sparked concern among those in the transportation sector. He cited specific examples of previous instances where grantees did not conform to federal immigration policies and indicated the necessity for ensuring that all hired subcontractors and other businesses only employ individuals who are legally permitted to work in the country.
Since taking office, Duffy has focused on implementing policies reflective of the Trump administration’s aim to reverse what they term “woke policies” and reduce regulatory burdens. This approach includes a preference for federal grants to regions with higher birth rates. Notably, the DOT has rescinded a previously established Biden-era policy which incorporated environmental and social factors in the evaluation of funded projects.
During an April 2 hearing, Duffy defended the decision to pause previously approved projects to review them for alignment with climate change, environmental justice, and equity considerations. While he did not clearly state whether pending grant awards could be revoked, he assured stakeholders that he would adhere to congressional intentions regarding infrastructure funding, stating, “I’m not going to hold up any projects.”
Furthermore, Duffy’s letter has made clear that grantees should not partake in any discerning actions while managing contracts or making hiring decisions, stressing that such actions should be merit-based. He pointedly stated that funds must not be distributed based on any “suspect classifications.”
He asserted, “Whether or not described in neutral terms, any policy, program, or activity that is premised on a prohibited classification, including discriminatory policies or practices designed to achieve so-called ‘diversity, equity, and inclusion,’ or ‘DEI’ goals, presumptively violates Federal law.”
In a recent interview on Fox Business, Duffy reiterated that states governed by Democrats that fail to align with the Trump administration’s interpretation of these laws risk losing their transportation funding. He remarked, “Hopefully, this will incentivize those states to get in line with commonsense American principles and policies… But if they don’t comply, we’re not going to approve their grants and the flow of billions of dollars into their states.”
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