New York state will now allow issuance of drivers' licenses irregardless of immigration status.

Prior to september 11, 2001, New York issued drivers' licenses without verification of immigration status. In 2002, the state limited licenses to those who could prove lawful status. Many other states have similar laws. These laws are often justified on the ground that someone unlawfully in the US should not be entitled to any lawful benefits. But these laws are also criticized as resulting in unlicensed drivers who also tend to be uninsured. New York is a trend setting state and it will be interesting to see whether this move marks a weather change on this topic.

Governor allows drivers licenses without knowledge of immigration status, Mid-Hudson News Network, September 22, 2007, for more information.