Duffy Threatens Local Transportation Agencies Over DEI, Immigration

A Connect 1 battery electric bus (left) and The Hop streetcar vehicle (right) at The Couture transit concourse. Photo by Jeramey Jannene.

The U.S. Department of Transportation (USDOT) is threatening federal funding for state and local transportation agencies that run afoul of two issues of primary concern for the new administration of President Donald Trump: immigration enforcement and Diversity, Equity and Inclusion policies, or DEI.

USDOT Secretary and Wisconsin native Sean Duffy has announced a new department policy he is calling “Follow the Law.” It was the second issue he raised during Trump’s latest cabinet meeting Wednesday.

“We have what is called ‘Follow the Law,'” Duffy said. “So, we have so many states and municipalities that don’t follow the law; whether it’s DEI discriminating against Americans; whether they give illegals driver’s license, or they’re sanctuary cities or states. If you don’t follow the law… we’re not gonna fund your projects.”

The policy says USDOT will cut off federal transportation funding for any state and local transportation governments engaging in “discriminatory policies or practices designed to achieve so-called ‘diversity, equity, and inclusion,’ or ‘DEI,’ goals,” or not cooperating with Immigrations and Customs Enforcement (ICE), according to an April 24 letter from Duffy that went out to agencies across the country.

Duffy’s letter tells state and local transportation agencies that the agreements signed with the federal government require them to “comply fully” with federal law and regulations.

“The Milwaukee County Department of Transportation (MCDOT) is in compliance with the law,” Director Donna Brown-Martin said in a statement to Urban Milwaukee.

Duffy’s new “Follow the Law” policy is not the first to suggest local agencies could lose funding for noncompliance with the law or regulations. However, using politically charged issues like immigration and “DEI” to make an explicit threat against funding is new.

MCDOT has taken great pains in recent years to ensure compliance with federal regulations and protect its federal funding. In 2023, the county discontinued a popular taxi service for persons with disabilities after it became clear it was not complying with Federal Transit Administration (FTA) guidelines. The county receives millions in grants and formula funding through the USDOT’s constituent agencies. The Milwaukee County Transit System (MCTS) receives approximately $30 million in formula funding annually, according to a spokesperson for MCDOT.

“Federal transit funding is used to enhance and maintain safety, to provide infrastructure improvements, and to enhance economic development through workforce connectivity,” Brown-Martin said.

During the cabinet meeting, Duffy said local governments will have to “certify” that they are following the law, as well as Executive Orders signed by Trump. The letter from Duffy to transit agencies, however, does not mention the president’s executive orders, many of which face legal challenges on the grounds that they violate federal law or the U.S. Constitution.

USDOT declined to comment on the new policy outside of Duffy’s letter and a recent press release.

Duffy’s letter relies on the equal protection clause of the 14th amendment, the 1964 Civil Rights Act and U.S. Supreme Court decisions in the recent Harvard admissions case (Students for Fair Admission, Inc. v. Harvard) and another that found sex-based discrimination unlawful United States v. Virginia, to define how “so-called… DEI” policies might run afoul of federal law.

“Recipients of DOT financial assistance must ensure that the personnel practices (including hiring, promotions, and terminations) within their organizations are merit-based and do not discriminate based on prohibited categories,” the letter states.

On immigration enforcement, Duffy’s letter points to federal law governing the sharing of individuals’ immigration status with the federal government; and another prohibiting concealing or shielding from detection any individual that is not a U.S. Citizen; and informs transportation agencies they are expected to comply with efforts to enforce federal immigration laws.

“Your legal obligations require cooperation generally with Federal authorities in the enforcement of Federal law, including cooperating with and not impeding U.S. Immigration and Customs Enforcement (ICE) and other Federal offices and components of the Department of Homeland Security in the enforcement of Federal immigration law,” the secretary wrote. “DOT has noted reported instances where some recipients of Federal financial assistance have declined to cooperate with ICE investigations, have issued driver’s licenses to individuals present in the United States in violation of Federal immigration law, or have otherwise acted in a manner that impedes Federal law enforcement.”