S. 3773 — Enforce Immigration or Lose Transportation Act

This section states congressional findings that (1) federal transportation funding supports the safety and efficiency of U.S. highways, bridges, and public transit systems; (2) compliance with federal immigration laws—including verification of lawful presence for driver's license issuance and cooperation with federal immigration enforcement—enhances road safety by vetting licensed drivers and reducing risks from unverified operators; (3) states issuing driver's licenses without proof of lawful presence or restricting information sharing with federal immigration authorities undermine national security and transportation safety; and (4) conditioning federal highway funding on such compliance is a reasonable exercise of Congress's authority under the Spending Clause.

This section establishes in 23 U.S.C. §155 a requirement for the Secretary of Transportation to withhold, beginning October 1, 2026, and each October 1 thereafter, 5% (first fiscal year of noncompliance) or 10% (subsequent fiscal years) of a state's apportionments under 23 U.S.C. §104(b)(1) and (2)—core formula programs for national highway performance and surface transportation—if the state is not in compliance. A state is not in compliance if it (1) prohibits or restricts state or local officials from sharing citizenship or immigration status information with DHS in violation of 8 U.S.C. §1373; (2) issues driver's licenses or identification cards without requiring evidence of lawful status as specified in section 202(c)(2)(B) of the REAL ID Act of 2005; or (3) fails to honor U.S. Immigration and Customs Enforcement detainers under 8 U.S.C. §1357(d) for individuals in state custody. (Thus, withheld funds are restored if compliance is achieved before the fiscal year's end; states must annually certify compliance, including relevant statutes, policies, and driver's license issuance data; and the Secretary may audit certifications, issue implementing regulations with appeal procedures, and provide technical assistance.) This section also makes a conforming amendment to the chapter analysis for chapter 1 of title 23, U.S. Code.