States Sue Trump Admin Over Plans to Cut Renewable Energy and Infrastructure Programs

Lawsuit alleges administration is unlawfully trying to defund critical, congressionally-approved initiatives.

Published on Feb. 24, 2026

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Several states have filed a federal lawsuit challenging the Trump administration's plans to cut funding for renewable energy and infrastructure programs created under the Inflation Reduction Act and Infrastructure Investment and Jobs Act. The lawsuit alleges the administration is violating the Constitution, federal law, and acting in excess of its authority by eliminating entire programs through a vague and opaque review process.

Why it matters

The targeted grant funds cover a wide range of critical initiatives, including electric grid modernization, building code updates, wind and solar energy, clean hydrogen, vehicle technology development, and decarbonization research. The plaintiffs argue the abrupt funding cuts have already resulted in construction and research being halted, layoffs, and states left unable to continue infrastructure updates, impacting long-term affordability and reliability for Americans.

The details

The lawsuit, led by New York Attorney General Letitia James, alleges the Trump administration issued an executive order on the first day of his second term aimed at promoting the hydrocarbon industry and defunding renewable energy programs. Various agencies, including the Department of Energy (DOE) and Office of Management and Budget (OMB), have since worked to eliminate these congressionally-approved initiatives through a 'nebulous and opaque' review process outlined in a DOE memo. The plaintiffs say the administration is using the government shutdown as leverage to 'hurt the Administration's political enemies' through these unlawful funding cuts.

  • On the first day of his second term, President Donald Trump issued the executive order.
  • In March 2025, the DOE created a 'kill list' of projects marked for cuts.
  • In May 2025, the DOE formalized the elimination of these projects in a memorandum.
  • In early October, the administration deployed the DOE memo as 'an opportunistic way to hurt the Administration's political enemies' during budget negotiations.

The players

Letitia James

New York Attorney General leading the lawsuit against the Trump administration.

Chris Wright

Secretary of Energy named as the lead defendant in the lawsuit.

Donald Trump

Former U.S. President who issued the executive order targeting renewable energy and infrastructure programs.

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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

What’s next

The judge in the case will decide whether to issue an injunction to restore the relevant funding cuts and vacate the DOE memo.

The takeaway

This lawsuit represents a critical check on the executive branch's authority, defending Congress' power of the purse and the separation of powers. The outcome could have far-reaching implications for the future of renewable energy and infrastructure investments in the U.S.