Transportation Secretary Warns Federal Funding at Risk Over DEI Policies, Noncompliance with ICE
U.S. Secretary of Transportation Sean Duffy released a letter on April 24 addressed to “All Recipients of U.S. Department of Transportation Funding” warning that continued financial support hinges on compliance with federal immigration enforcement and a rejection of certain diversity, equity, and inclusion (DEI) practices.
Duffy underscored that organizations accepting USDOT funds are bound by “legally enforceable agreements,” and asserted that some DEI initiatives—as well as resistance to cooperation with U.S. Immigration and Customs Enforcement (ICE)—may violate federal law.
“The Department will vigorously enforce the law on equal terms as to all its recipients and intends to take appropriate measures to assess their compliance based on the interpretation of Federal law,” Duffy wrote, making clear that adherence to these interpretations is a condition for maintaining funding. He emphasized that employment practices, including hiring, promotions, and terminations, must be “merit-based,” and the allocation of funds received from USDOT may not be discriminatory based on prohibited categories (race, color, national origin, sex, or religion).
Moreover, the aforementioned legal obligations to receive federal funds require cooperation with federal authorities, highlighting U.S. Immigrations and Customs Enforcement (ICE) and the Department of Homeland Security (DHS). This includes penalties for the obstruction of ICE investigations or the issuance of driver’s licenses to undocumented immigrants.
Further, the memo specifies that federal transportation funds must not be passed to subrecipients, businesses, or service providers unless they are U.S. citizens, lawful permanent residents, or legally authorized entities—and must not employ individuals residing in the country unlawfully.
Read the full memo here.