Red Light Act

The Red Light Act withholds 100% of specific federal highway funds from states that issue driver's licenses or identification cards to undocumented immigrants. For fiscal years 2023 and beyond, states allowing such identification for aliens unlawfully present in the U.S. lose these funds, which are then redistributed to other compliant states if the noncompliant state doesn’t repeal its law. States can regain withheld funds by repealing their relevant law before the fiscal year ends. The bill uses the existing federal definition of "identification card" from Title 18. It directly affects states with laws permitting identification for undocumented immigrants and aims to incentivize policy changes through federal funding consequences.