Washington Attorney General Nick Brown (Source: WA Attorney Gen. Nick Brown IG)
WHATCOM COUNTY, Wash. — Washington Attorney General Nick Brown announced Wednesday a multistate lawsuit accusing federal agencies of unlawfully canceling billions of dollars in congressionally approved clean-energy funding.
The lawsuit, filed in the U.S. District Court for the Northern District of California, challenges actions by the U.S. Department of Energy, Energy Secretary Chris Wright, the Office of Management and Budget, and OMB Director Russell Vought.
“On his first day in office, President Trump issued executive orders declaring a bogus national energy emergency and ordering federal agencies to take action to terminate the Green New Deal,” Brown said.
Brown is co-leading the case with California Attorney General Rob Bonta and Colorado Attorney General Phil Weiser, joined by a coalition of 10 additional states. Brown said the funding cancellations threaten Washington’s clean-energy investments and environmental goals.
“This administration wants to sabotage all of the progress Washington has made in embracing renewable energy and addressing climate change,” Brown said. “We refuse to be dragged back to the days of runaway pollution in flagrant violation of the law.”
Lawsuit targets termination of congressionally funded programs
According to the complaint, federal agencies abruptly halted funding tied to major climate and infrastructure laws, including the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.
“To carry out this directive, the DOE compiled a ‘hit list’ of awards worth billions of dollars, preparing to terminate them to further the administration’s illegal objective of eliminating energy and infrastructure programs created under Congress’s authority in laws such as the 2021 Infrastructure Investment and Jobs Act and the 2022 Inflation Reduction Act,” Brown said.
State attorneys general argue the executive branch lacks authority to cancel programs created and funded by Congress, calling the move a violation of the constitutional separation of powers and the Administrative Procedure Act.
“President Trump has outlined a bold and ambitious agenda to unleash American energy at home and abroad to restore energy dominance,” Secretary of Energy Chris Wright said shortly after the administration signed the executive order last year. “To compete globally, we must expand energy production and reduce energy costs for American families and businesses.”
The coalition is asking the court to declare the terminations unlawful and permanently block federal agencies from interfering with the programs.
Hydrogen Hub funding loss hits Pacific Northwest project
Among the projects at issue is the Pacific Northwest Hydrogen Hub, which federal officials terminated funding for in October 2025 without providing detailed justification, according to the lawsuit.
The hub previously received an initial $27.5 million federal award and had been eligible for up to $1 billion in total support. Washington lawmakers also approved $20 million in state funding, with roughly $15 million already spent.
State officials say the project was expected to reduce greenhouse gas emissions by about 1.7 million metric tons annually and support thousands of jobs across the region. Without federal backing, the hub’s future remains uncertain.
Washington State University grants also canceled
The complaint also cites four terminated awards to Washington State University. Those projects focused on developing lower-carbon construction materials and improving electric grid reliability and resilience.
State officials contend the grants were canceled without explanation, halting research intended to reduce emissions while strengthening infrastructure.
Multistate coalition joins legal challenge
In addition to Washington, California and Colorado, the lawsuit includes Connecticut, Illinois, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, Vermont and Wisconsin, along with a California state economic development office.
The case could determine how much authority federal agencies have to halt funding that Congress has already approved, with potential implications for energy projects nationwide.
Federal officials frame cuts as shift in energy priorities
In public statements and department updates, federal energy officials have defended the funding reviews as part of a broader effort to realign national energy policy.
“America must lead the world in innovation and technology breakthroughs, which includes accelerating the work of the Department’s National Laboratories,” Sec. Wright said. “We must also permit and build energy infrastructure and remove barriers to progress, including federal policies that make it too easy to stop projects and far too difficult to complete projects.”
The U.S. Department of Energy has said it is prioritizing grid reliability, domestic energy production and what it describes as more cost-effective investments, while reassessing programs launched under previous administrations.
Department summaries outlining the policy direction describe the changes as an effort to reduce regulatory burdens and focus resources on projects officials say better support long-term energy security.
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