From FAIR:
Members of Congress Introduce Legislation to End Driver's Licenses for Illegal Aliens

In order to ensure other states do not attempt to take up where New York left off, Senator John Barrasso (R-WY) introduced legislation Tuesday that would discourage states from issuing driver's licenses to illegal aliens. The bill (S. 2334) would withhold ten percent of federal highway funds from states that do not require, and subsequently verify, proof of legal status from driver's license applicants. Funds withheld from non-compliant states would ultimately be redistributed to states that do not give licenses to illegal aliens. In a statement made Tuesday morning, Senator Barrasso stressed the urgent need for such legislation. "We won't truly be serious about securing our borders and stopping illegal immigration until we stop the practice of issuing driver's licenses to the very individuals who are breaking our laws."

A similar bill (H.R. 4160) was introduced last Tuesday by Representative Vito Fossella (R-NY) in the House of Representatives. H.R. 4160 provides that if a state does not comply with REAL ID - which requires driver's license applicants to provide proof of legal presence - it will lose 2% of federal highway funds in the first year, 4% in the second, 6% in the third, and 8% in the fourth and subsequent years. Upon compliance with REAL ID, all funds will be re-instated.

In addition, last Wednesday Representatives Peter King (R-NY) and Pete Sessions (R-TX) introduced The Prevention of Unsafe Licensing Act (H.R. 4176), a bill that would bar states from granting licenses to illegal aliens. According to a statement released by Congressman Sessions, H.R.4176 amends the REAL ID Act of 2005 by eliminating a provision that allows a state to provide driver's licenses to illegal aliens as long as those licenses invalid for federal government purposes.

Upon introduction, The Prevention of Unsafe Licensing Act already had 156 co-sponsors. Remarking on the introduction of their bill, Congressman Sessions said, "Providing illegal immigrants with state-issued driver's licenses would undermine the rule of law, further jeopardize the safety of our nation, and open a gateway for fraud." Congressman King said, "I believe strongly that the federal government has the right to do it because illegal immigration and homeland security are federal issues." In addition, King argued that granting driver's licenses to illegal aliens gives identification to those who could be terrorists and "rewards illegal immigrants." (USA Today, Nov. 16, 2007)

Contact your Senator and ask them to co-sponsor S. 2334:
http://www.senate.gov/general/contact_i ... rs_cfm.cfm

Contact your Congressman and ask them to co-sponsor
H.R. 4160:

http://www.house.gov/house/MemberWWW_by_State.shtml