New York’s Attorney General Letitia James and Connecticut’s Attorney General Wililam Tong have joined with 11 other attorneys general to sue the Trump administration for unlawfully terminating billions of dollars in funding for energy and infrastructure projects. Congress had appropriated funding for the projects.
The lawsuit was filed in the U.S. District Court for the Northern District of California. It names as defendants: Christopher Wright in his official capacity as secretary of energy; the U.S. Department of Energy; Russell T. Vought in his official capacity as director of the U.S. Office of Management and Budget; and the U.S. Office of Management and Budget.
The lawsuit accuses the Trump administration of first unlawfully terminating funding for 315 energy related projects valued at almost $8 billion and then targeting to kill 600 more projects worth $20 billion.
James, Tong and the other plaintiffs argue that the administration cannot simply eliminate programs it dislikes by freezing already obligated funds and issuing sweeping, arbitrary grant terminations. They are asking the court to reverse the cuts and release the funding that states are relying on to meet rising energy needs nationwide.
“Americans from coast to coast are feeling the impacts of rising utility bills and strained energy grids,” James said. “Instead of lowering costs and strengthening our infrastructure, this administration is actively sabotaging investments in our communities. As much as this administration may want to punish states it disagrees with, Congress holds the power of the purse. New Yorkers and all Americans deserve relief from crushing costs and confidence that their jobs will not be eliminated on a political whim.”
According to Tong, “This is yet another erratic and illegal move by Trump to ensure Big Oil keeps raking in top profits while the rest of us suffer. Congress voted to fund these programs to create jobs, save us money on our utility bills, and end our reliance on dirty fossil fuels. We’re suing to force Trump to understand laws and Congress are not optional.”
The lawsuit includes a history of steps taken by the Trump administration to kill green energy programs. It alleges that when late last year there was a government shutdown, the administration used that as a reason to kill hundreds of energy projects in states led by Democrats.
The lawsuit points out that in 2023, the government awarded the University of Connecticut $2,250,000 in support of a project centered on restoration of the electric grid in an emergency. On October 2, 2025, the University received a letter from the Department of Energy (DOE) terminating the award.
“By unlawfully terminating the award, Defendants have deprived Connecticut and its citizens of significant, tangible benefits for the power and energy industry, including improved grid reliability and resilience,” the lawsuit claims.
The lawsuit claims that the Trump administration’s DOE terminated a cooperative agreement valued at $9 million with the New York State Energy Research and Development Authority (NYSERDA), just one of many programs funded by Congress that the administration shut down.
The plaintiffs claim that by abruptly terminating or abandoning grants, the administration has halted construction and research midstream, forced layoffs, and left states unable to move forward with critical infrastructure projects. They argue that DOE was vague and opaque in terminating awards. In some cases, they said, the federal government simply stopped communicating altogether, leaving projects frozen and states unable to plan or proceed. The attorneys general argue that the administration’s actions violate the Administrative Procedure Act and the U.S. Constitution’s separation of powers.
The lawsuit asks the court to halt the unlawful terminations and restore access to the funding Congress lawfully appropriated.
