This bill, called the SAFE Driving Laws Act, would penalize states that issue driver's licenses to people who aren't U.S. citizens or lawful permanent residents. Starting in 2027, any state that doesn't comply would lose 50% of its federal highway funding—money that typically goes toward road construction and maintenance projects.

The bill requires two things from states to avoid losing this funding: First, states must have laws that prohibit issuing driver's licenses to non-citizens and non-permanent residents. Second, states cannot block local or state officials from sharing immigration information with federal immigration authorities. This means states would need to allow their police, DMV staff, and other officials to report someone's immigration status to the Department of Homeland Security if they encounter them.

The federal government would maintain a public database showing which states comply with these requirements. Essentially, this bill uses federal highway money as leverage to force states to adopt stricter citizenship requirements for driver's licenses and to ensure they cooperate with federal immigration enforcement efforts. States that currently allow undocumented immigrants to get driver's licenses would face significant financial consequences.