A total of thirteen states are suing the federal government over withheld grants approved by Congress for clean energy projects, totaling about $2.7 billion.
The funds were for programs allocated under Biden’s Inflation Reduction Act and Bipartisan Infrastructure Law, which have been cancelled by the US Department of Energy (DOE) and the President’s Office of Management and Budget (OMB).
The lawsuit claims that the terminations unlawfully violate the constitutional principle of separation of powers and the Administrative Procedure Act, which requires government agencies to follow fair and transparent procedures when making rules and decisions.
It asks the court to rule the administration’s actions illegal and to permanently stop them from interfering with these programs.
Partisan Retribution Claims
According to California’s Attorney General Rob Bonta, who co-led the lawsuit alongside Washington and Colorado, the funding cuts reflect “partisan retribution,” as most of these states voted for the Democratic Party in the latest elections.
The suit was also joined by Connecticut, Illinois, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, Vermont and Wisconsin.
“These aren’t optional programs — these are investments approved by bipartisan majorities in Congress, and the President doesn’t get to cancel them simply because he disagrees with them,” Rob Bonta stated on Wednesday — according to the Los Angeles Times.
In September, Trump told reporters that he was open to “cutting programs that [Democrats] like” as a government shutdown loomed, according to the Los Angeles Times.
The following day, OMB director Russell Vought posted on X that the Administration was canceling “nearly $8 billion in Green New Scam funding to fuel the Left’s climate agenda” in 16 states, all of which did not vote for Trump in 2024.
California
California, one of the states involved, saw cutbacks of over $1.6 billion, including $1.2 billion in federal funding to develop clean hydrogen and $4 million for energy-efficient building upgrades in the state.
Governor Gavin Newsom said the cuts to energy and infrastructure programs would have prevented an estimated $3 billion in annual health costs linked to air pollution.
“California will fight for these jobs, this infrastructure, and the global clean energy competitiveness that the Trump administration has ceded to China,” Newsom added.
According to official records, Attorney General Rob Bonta filed 54 lawsuits against the Trump Administration during the first year of the term.
California “has secured 12 final rulings, 35 preliminary injunctions and other emergency relief, and increasingly, appellate orders affirming these rulings.”
These actions covered a wide range of areas, including immigration and citizenship, tariff authority, energy policy and environmental protections, public health, infrastructure, and the deployment of the National Guard during protests.
California ‘EV Mandate’ Repeal
Mid-last year, the US President held a bill-signing ceremony to repeal what the Administration referred to as the “California EV mandate.”
The three resolutions were first approved by the Congress and aim to end tax breaks on EVs purchased in California, as well as diesel engine rules adopted by the state, which intended to stop selling gasoline-only vehicles by 2035.
A coalition of 11 states filed a lawsuit against the Trump Administration, the President himself and the Environmental Protection Agency (EPA).
The states — including New York, New Jersey, Colorado, Massachusetts, Washington, among others — asked the Court to declare that the federal decision cannot impact state emissions rules.
Clean Energy Cuts
These cuts are part of a broader Trump administration effort to roll back federal support for clean energy and climate‑related programs since returning to office last January.
On his first day in office, the President issued executive orders declaring a “national energy emergency” and calling for the termination of the Green New Deal, frequently referred to as a ‘Green New Scam’ by the Administration.
Trump also promised to reduce clean energy tax breaks — including the $7,500 federal credit for purchasing or leasing electric vehicles — which were eliminated last September.
The Trump Administration said on Wednesday it is also removing a Department of Energy provision that, for more than 20 years, allowed EVs to be counted at artificially high fuel economy values, making it easier for automakers to meet federal efficiency targets.
