This legislation proposes to amend federal law to penalize states that issue driver's licenses or identification cards to individuals unlawfully present in the United States. Specifically, it directs the Secretary of Transportation to withhold 100 percent of certain federal highway funds from any state that has enacted a law permitting such issuance. This measure would apply for fiscal year 2023 and all subsequent fiscal years. The bill outlines a mechanism for the restoration of these funds. If a state repeals its non-compliant law before the end of the fiscal year, the previously withheld funds would be reapportioned to that state. However, if the state fails to repeal the law, the withheld funds would then be proportionally distributed among all other states that do not have such laws in place. Furthermore, states that repeal and then later re-enact such laws would face renewed withholding of funds in subsequent fiscal years.