California sues Trump over $1.2 billion cut to clean hydrogen hub funding

State alleges federal government unfairly targeted California's clean energy efforts

Published on Feb. 23, 2026

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California Attorney General Rob Bonta and the Governor's Office of Business and Economic Development have filed a lawsuit against the Trump administration over a $1.2 billion cut to funding for a planned clean hydrogen hub in the state. The lawsuit alleges the federal government unfairly targeted California's clean energy initiatives.

Why it matters

The clean hydrogen hub was a key part of California's strategy to reduce greenhouse gas emissions and transition to renewable energy sources. The funding cut is seen as a political move to undermine the state's environmental policies under the previous administration.

The details

The lawsuit claims the Trump administration's decision to slash funding for the clean hydrogen hub project was arbitrary and capricious, and violated the Administrative Procedure Act. California officials argue the funding cut was retaliation for the state's progressive climate policies that were at odds with the former president's agenda.

  • The lawsuit was filed on February 19, 2026.

The players

Rob Bonta

California Attorney General who is leading the lawsuit against the federal government.

Governor's Office of Business and Economic Development

California state agency that is co-plaintiff in the lawsuit.

Trump administration

The former presidential administration that cut $1.2 billion in funding for California's clean hydrogen hub project.

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What they’re saying

“We must not allow the federal government to undermine California's critical clean energy initiatives. This funding cut was a blatant political attack, and we will fight it in court.”

— Rob Bonta, California Attorney General

What’s next

The lawsuit will now proceed through the federal court system, with California seeking to have the funding cut reversed and the clean hydrogen hub project fully restored.

The takeaway

This legal battle highlights the ongoing tensions between California's progressive environmental agenda and the policies of the previous federal administration. The outcome could have significant implications for the state's ability to achieve its ambitious clean energy goals.