Attorney General Bonta Files Lawsuit Against the Trump Administration for Illegally Terminating Funding for Energy and Infrastructure Programs

OAKLAND — California Attorney General Rob Bonta today, alongside the Governor’s Office of Business and Economic Development and the California Energy Commission, co-led a coalition of 13 attorneys general in filing a lawsuit challenging the Trump Administration’s unlawful decision to terminate funding for congressionally mandated energy and infrastructure programs created by Congress in laws such as the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA, also known as the Bipartisan Infrastructure Law). The lawsuit, filed in the U.S. District Court for the Northern District of California, challenges the decisions by the United States Department of Energy (DOE), DOE Secretary Chris Wright, the Office of Management and Budget (OMB), and OMB Director Russell Vought, to terminate billions of dollars in energy and infrastructure awards nationwide. Specifically in California, $1.2 billion in federal funding for ARCHES (Alliance for Renewable Clean Hydrogen Energy Systems) and $4 million under the Resilient and Efficient Codes Implementation (RECI) program was terminated. In today’s lawsuit, California and the attorneys general allege that the termination and abandonment of funding violate the constitutional separation of powers, as the funding was approved by bipartisan majorities in Congress.

“The President claims to seek ‘American Energy Dominance’ but, in California, his unlawful termination of over $1.2 billion in total funding for crucial clean energy projects means over 200,000 union job cuts, rising energy prices, and higher rates of pollution that wreak havoc on our health,” said Attorney General Bonta. “The President is cherry-picking this funding at the expense of hardworking Americans and stifling innovation and the economy for the sake of partisan retribution. My office will continue to hold the President and his administration accountable for breaking the law.”

"We will not allow Trump to sell out our future to his biggest donors,” said Governor Gavin Newsom. “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. We’re not letting that stand. California will fight for these jobs, this infrastructure, and the global clean energy competitiveness that the Trump administration has ceded to China."

“The cancellation of ARCHES' funding was a shortsighted decision from the Trump Administration, one that threatens the promise of California's hydrogen market while the rest of the world surges ahead in its development,” said Dee Dee Myers, Senior Advisor to Governor Newsom and Director of the Governor’s Office of Business and Economic Development (GO-Biz). "Today's filing is yet another sign that we will not back down from this threat—we’ll keep pushing forward in our effort to create a carbon-neutral economy that benefits all California’s residents.”

"California is building the electric grid of the future, and we are doing so by slashing emissions, advancing innovation, and focusing on affordability for consumers," said CEC Chair David Hochschild. "The Trump Administration's termination of grants like ARCHES, RECI, and so many other innovative clean energy programs undermine energy independence and make electricity more expensive for consumers. Not on our watch."

On January 20th, 2025, his first day in office, President Trump issued executive orders, declaring a bogus “national energy emergency” and “Terminating the Green New Deal.” Pursuant to this directive, the DOE compiled a “hit list” of energy and infrastructure awards worth billions of dollars. The list was intended to further the administration’s illegal objective of eliminating energy and infrastructure programs created under Congress’s authority in laws such as the 2021 IIJA and the 2022 IRA.  In May, DOE issued a policy memorandum asserting that it would subject projects to which it had previously awarded funding to a vague and opaque “review” process that was in truth designed to provide cover to eliminate energy and infrastructure programs. As a government shutdown loomed in late September of 2025, the President told reporters he could “do things during the shutdown that are irreversible” to attack Democrats, including “cutting programs that they like.” The next day, Russell Vought, the Director of OMB, posted on X that DOE would be terminating nearly $8 billion in “Green New Scam” funding to fuel ‘the Left’s climate agenda.’” The post listed 16 States where projects would be defunded, all Democratically-leaning. DOE announced the cuts the next day, citing their May 2025 policy memorandum. Meanwhile, throughout the first year of the Trump presidency, DOE has quietly abandoned projects, including those contained in various “kill lists.” All were funded as elements of high-profile energy and infrastructure legislation, including bipartisan legislation, passed during the previous presidential administration. 

In California, over $1.2 billion in total funding for the State’s clean-energy projects were terminated. ARCHES was created to replace fossil fuels with clean hydrogen in utilities, public transit, heavy-duty trucking, and port operations in California. As a result of the termination, the Trump Administration deprived California and its citizens of a thriving hydrogen ecosystem that would foster economic prosperity by creating 200,000 new jobs. California will also lose nearly $3 billion in annual savings expected from improved health and air quality. RECI supports the adoption and implementation of updated, energy-efficient building codes, aiming to reduce energy bills, lower emissions, and enhance grid resilience. From the termination of these awards, California will lose opportunities to create high-paying jobs, energy bills will continue to skyrocket, greenhouse gas emissions will increase, and indoor air quality and public health will suffer.  

The complaint filed today alleges that the Trump Administration’s decision to eliminate energy programs created by Congress is unlawful because it violates the separation of powers and the Administrative Procedure Act. The programs were created by statute, and federal agencies have a duty to faithfully execute those statutes. California and the coalition ask the court to declare that the Trump Administration’s actions are unlawful and to permanently stop the Administration from interfering with these programs. 

In filing this complaint, Attorney General Bonta co-leads with Colorado Attorney General Phil Weiser and Washington Attorney General Nicholas Brown. Joining them are the attorneys general of Connecticut, Illinois, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, Vermont, and Wisconsin.