NY sues Trump administration over suspension of energy projects

Attorney General Letitia James challenges cuts to federal clean energy grants ordered by the Trump administration.

Published on Feb. 23, 2026

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The New York Attorney General's office has filed a lawsuit challenging the Trump administration's decision to cancel more than $7.5 billion in clean energy grants, including $500 million in grants for New York businesses. The administration cited rushed reviews and inadequate documentation as the reason for the funding cuts, but the state argues the cuts were meant to punish Democrats over the government shutdown.

Why it matters

The canceled grants would have funded projects to improve the reliability of New York's energy grid, increase energy efficiency, and reduce utility bills for New Yorkers. The state argues the administration's actions were politically motivated and unlawful, as they did not follow proper procedures for terminating congressionally authorized funding.

The details

The canceled grants included $70 million for Plug Power, a Slingerlands company that produces hydrogen fuel cells, and $21.5 million for the New York State Energy Research and Development Authority for building energy efficiency and grid resilience projects. The administration has sought to increase domestic production of fossil fuels and nuclear energy, while scaling back investment in renewable energy projects.

  • In October 2026, the Trump administration announced the cancellation of more than $7.5 billion in clean energy grants, including $500 million in grants for New York.
  • The funding cuts were announced the same day the federal government shut down after Democrats and Republicans failed to reach a funding agreement.

The players

Letitia James

The Attorney General of New York who is leading the lawsuit against the Trump administration over the canceled clean energy grants.

Donald J. Trump

The former President of the United States whose administration canceled the clean energy grants.

Plug Power

A Slingerlands, New York company that produces hydrogen fuel cells and lost over $70 million in canceled grants.

New York State Energy Research and Development Authority

The state agency that lost $21.5 million in grants for building energy efficiency and grid resilience projects.

Chris Wright

The U.S. Department of Energy Secretary who cited rushed reviews and inadequate documentation as the reason for the funding cuts.

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What they’re saying

“President Trump promised to protect taxpayer dollars and expand America's supply of affordable, reliable, and secure energy. Today's cancellation's deliver on that commitment.”

— Chris Wright, U.S. Department of Energy Secretary

“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 the knowledge that their jobs will not be eliminated on a political whim.”

— Letitia James, New York Attorney General

What’s next

The judge in the case will decide whether the Trump administration followed proper legal procedures in canceling the clean energy grants.

The takeaway

This lawsuit highlights the ongoing political battles over energy policy, with the Trump administration seeking to boost fossil fuel and nuclear energy production while cutting funding for renewable energy projects. The outcome could have significant implications for New York's clean energy transition and the broader national debate over the future of the U.S. energy landscape.