Blue States Sue Trump Administration Over Canceled Green Funds

Lawsuit challenges cancellation of billions in climate project funding, primarily in Democrat-leaning states.

Published on Feb. 22, 2026

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A group of 13 states that did not support President Trump in the last election sued the administration on Wednesday over the cancellation of federal climate funds. The lawsuit alleges the moves were a violation of Congress's right to appropriate funds and the Administrative Procedure Act.

Why it matters

The lawsuit represents an escalation in the ongoing political battle over climate change policy between blue states and the Trump administration. It highlights the deep partisan divide over the role of the federal government in addressing climate change.

The details

The lawsuit challenges the Trump administration's cancellation of billions of dollars in funding for climate-friendly projects, primarily in Democrat-leaning states. It alleges the moves were an 'opportunistic way to hurt the Administration's political enemies and those associated with them'.

  • The lawsuit was filed on Wednesday, February 18, 2026.
  • In early October, the Trump administration sought to cut 'Green New Scam funding to fuel the Left's climate agenda'.

The players

Gavin Newsom

The Democratic governor of California, who said 'We will not allow Trump to sell out our future to his biggest donors'.

Russell Vought

The White House Office of Management and Budget Director, who described the Trump administration's funding cuts as targeting the 'Left's climate agenda'.

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What they’re saying

“We will not allow Trump to sell out our future to his biggest donors. Trump didn't just tear up a contract: he defied Congress, jeopardized more than 200,000 good-paying jobs, and robbed billions of dollars in health savings from communities that have been hit the hardest by pollution.”

— Gavin Newsom, Governor of California

“Green New Scam funding to fuel the Left's climate agenda.”

— Russell Vought, White House Office of Management and Budget Director

What’s next

A federal court earlier this year ordered the administration to reinstate funding for seven projects that represented a small fraction of the total cut. The outcome of this new lawsuit could determine the fate of the remaining canceled climate project funding.

The takeaway

This lawsuit highlights the deep partisan divide over the federal government's role in addressing climate change, with blue states suing the Trump administration for canceling climate-friendly project funding that they view as crucial. The case could have significant implications for the future of federal climate policy.