A coalition of 19 state attorneys general and two state governors that was co-led by New York Attorney General Letitia James has secured a victory against the Trump administration regarding federal funding of state energy programs. The U.S. District Court for the District of Oregon found that the U.S. Department of Energy’s (DOE) cap on state energy program funding is illegal.
In a ruling from the bench, Judge Mustafa Kasubhai granted the coalition’s motion for summary judgment, concluding that the DOE policy violated the Administrative Procedure Act (APA). The policy would have slashed reimbursements for staffing and administrative costs and threatened millions of dollars for essential energy programs.
“Once again, my office has successfully stopped the federal government from illegally cutting off funding that New Yorkers rely on,” said James. “DOE’s cap on funding is unlawful and dangerous, and (the) ruling ensures that New York will continue to get the resources it needs to deliver cleaner, safer, and more affordable energy for our communities.”
The lawsuit argued that DOE’s cap violated federal law, disregarded states’ negotiated cost rates, and would undermine staffing and operations for state energy agencies.
In New York, approximately $1.6 million in state energy program funding was at risk due to DOE’s policy. This funding also helps the state ensure the state’s energy systems can withstand extreme weather or disasters, determine how electricity prices and market rules are set, and run annual practice drills so the state can respond quickly if the power grid or fuel supply is disrupted. Without full federal support, the state could have potentially had to cancel or delay programs that enable it to meet energy demand while prioritizing affordability.
In addition to James, the plaintiffs in the lawsuit were the attorneys general of California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Washington, Wisconsin, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania.
