Federal transportation officials allege Minnesota has been illegally issuing commercial driver's licenses and are threatening to withhold highway funding from the state unless it takes "corrective measures."

The U.S. Department of Transportation said Monday an audit found one-third of non-domiciled CDLs reviewed by the Federal Motor Carrier Safety Administration were "issued illegally." Non-domiciled CDLs are issued to those who are not U.S. citizens or permanent residents.

If the state doesn't "come into compliance" in 30 days, the department said it could lose $30.4 million in federal funding.

"We are following the law exactly as it's written, exactly as we implemented it for decades, and coincidentally today they decided to keep piling these things on," Minnesota Gov. Tim Walz said T

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