AGs James and Tong Sue Trump Admin Over Energy Funding Cuts

Lawsuit alleges unlawful termination of billions in energy and infrastructure project funding

Feb. 26, 2026 at 3:55am

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New York Attorney General Letitia James and Connecticut Attorney General William Tong have joined 11 other state AGs in suing the Trump administration for unlawfully terminating billions of dollars in funding for energy and infrastructure projects that were previously approved by Congress.

Why it matters

The lawsuit argues that the Trump administration cannot simply eliminate programs it dislikes by freezing already obligated funds and issuing arbitrary grant terminations, depriving states of critical investments in their energy infrastructure and jobs.

The details

The lawsuit, filed in the U.S. District Court for the Northern District of California, names several Trump administration officials as defendants. It accuses the administration of first terminating funding for 315 energy projects worth almost $8 billion, and then targeting 600 more projects worth $20 billion. The AGs argue the administration's actions violate the Administrative Procedure Act and the Constitution's separation of powers.

  • In 2023, the government awarded the University of Connecticut $2.25 million for a grid restoration project.
  • On October 2, 2025, the Department of Energy terminated the University of Connecticut's award.
  • In late 2025, the government shutdown was used as a reason to kill hundreds of energy projects in Democratic-led states.

The players

Letitia James

New York Attorney General.

William Tong

Connecticut Attorney General.

Christopher Wright

Secretary of Energy in his official capacity.

Russell T. Vought

Director of the U.S. Office of Management and Budget in his official capacity.

University of Connecticut

Recipient of a $2.25 million grant from the government in 2023 for a grid restoration project.

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What they’re saying

“Americans from coast to coast are feeling the impacts of rising utility bills and strained energy grids. 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.”

— Letitia James, New York Attorney General

“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.”

— William Tong, Connecticut Attorney General

What’s next

The judge in the case will decide whether to halt the unlawful terminations and restore the funding Congress appropriated.

The takeaway

This lawsuit highlights the ongoing battle between states and the Trump administration over energy policy, with states seeking to uphold Congressional funding for clean energy projects in the face of the administration's efforts to undermine them.