S. 4317 — No Licenses for Illegal Drivers or Truckers Act of 2026

This section establishes a new program under 23 U.S.C. §155 to withhold 10% of a state's federal-aid highway apportionments under 23 U.S.C. §104(b)(1)-(8)—covering core programs such as the National Highway Performance Program and Surface Transportation Block Grant Program—beginning October 1, 2026 (i.e., start of FY2027), and annually thereafter, if the state fails to enact and enforce a law requiring verification of applicants' lawful presence (i.e., U.S. citizen/national or lawful permanent resident, per DHS-issued evidence) for driver's licenses, commercial driver's licenses, and state personal identification cards. The required state law must use DHS-approved methods to (1) electronically validate applicants' biographic and biometric data (name, photograph, fingerprints); (2) conduct FBI fingerprint-based background and security checks to confirm ongoing lawful presence; and (3) verify evidence authenticity via Social Security Number or Individual Taxpayer Identification Number checks with the IRS, SSA, or USCIS's SAVE program. Withheld funds are restored if compliance is achieved before the fiscal year's end; otherwise, they are redistributed proportionally the following October 1 to compliant states based on their share of total compliant-state apportionments under §104(b); the provision does not affect REAL ID Act requirements. This section also makes a conforming amendment to the chapter analysis for chapter 1 of title 23.