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13 States Sue Trump Administration Over Canceled Clean Energy Funds, Seek to Restore $2.7 Billion

The coalition argues the administration lacked authority to cancel grants Congress appropriated under the IRA and the Bipartisan Infrastructure Law.

Overview

  • Filed on Feb. 18 in the Northern District of California, the suit is co-led by attorneys general from California, Colorado and Washington and names DOE, Energy Secretary Chris Wright, OMB and Director Russell Vought as defendants.
  • The complaint targets about $2.7 billion in terminated awards, including $1.2 billion for California’s ARCHES hydrogen hub and $4 million for the state’s Resilient and Efficient Codes Implementation program.
  • Plaintiffs allege violations of the Constitution’s separation of powers and the Administrative Procedure Act and seek declaratory and injunctive relief to reinstate the grants.
  • States say cuts disproportionately hit Democratic-leaning states, citing Vought’s post on X announcing the end of “nearly $8 billion” in “Green New Scam” funding, while DOE has said some projects did not meet program goals.
  • Officials highlight project impacts such as ARCHES staff layoffs and warn of broader harms, including more than 200,000 union jobs at risk in California and the loss of nearly $3 billion in projected annual health cost savings; early court rulings are still pending.