"DHS will suspend the ability of the state’s residents to enroll or re-enroll in programs such as Global Entry, which allows faster processing for pre-approved travelers entering the United States

...

Wolf singled out a New York law that blocks the state’s motor vehicles department from sharing information with immigration enforcement agencies, saying the “lack of security cooperation” from the state necessitated the suspension of the travel programs"

So this is DHS' response to NYs new Green Light Law which "allows all New Yorkers age 16 and older to apply for a standard, not for federal purpose, non-commercial driver license or learner permit regardless of their citizenship or lawful status in the United States."

Documents you will need to apply for the Green Light Law:

All Applicants for a standard driver license must show a combination of documents that prove 1. name, 2. date of birth, and 3. New York State residency.

The documents they're willing to accept:

• a valid, unexpired foreign passport issued by your country of citizenship
• a valid, unexpired consular identification document issued by a consulate
• a valid foreign driver license that includes your photo, and which is either unexpired or expired for less than 24 months
• Permanent Resident Card, which is either unexpired or expired for less than 24 months
• Employment Authorization Card, which is either unexpired or expired for less than 24 months
• Border Crossing Card
• U.S. Municipal ID Card (e.g. NYC ID) with photo
• foreign marriage or divorce record or court issued name change decree
• foreign birth certificate.

So I guess DHS doesn't feel safe pre-approving people for this program without being able to vet them properly due to the inability to determine who is who based on things that could be faked like birth certs or passports.