Legal Battle Brews Over Trump Administration’s Funding Freeze for Energy Programs

A coalition of 13 state attorneys general has filed a lawsuit challenging the Trump Administration’s decision to terminate funding for energy and infrastructure programs established by the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA). The lawsuit, filed in the U.S. District Court for the Northern District of California, targets the Department of Energy (DOE), DOE Secretary Chris Wright, the Office of Management and Budget (OMB) and OMB Director Russell Vought.

Constitutional Concerns and State Opposition

Rhode Island Attorney General Peter F. Neronha, leading the coalition, stated the Administration’s actions demonstrate a disregard for the Constitution and the separation of powers. “Congress, not the President, has the power of the purse,” Neronha said, emphasizing that Congress allocated the funding for clean energy initiatives. He further accused the administration of targeting states that voted for the Democratic candidate in the 2024 election, even as sparing those that did not.

Timeline of Funding Cuts and Executive Orders

The legal challenge stems from executive orders issued by President Trump on January 20, 2025, declaring a “national energy emergency” and seeking to end the “Green New Deal.” By late March 2025, the DOE identified at least $22 billion in potential cuts to DOE-funded energy projects, based on whether they aligned with the Administration’s policy goals. A May 2025 DOE memorandum outlined a process for evaluating grant funding on a case-by-case basis, considering alignment with national interests and Administration priorities.

As a government shutdown loomed in September 2025, President Trump indicated his intention to use the shutdown to make “irreversible” cuts to programs favored by Democrats. On October 1, 2025, OMB Director Vought announced cuts of “nearly $8 billion in Green New Scam funding,” followed by a list of affected states. The DOE subsequently terminated 315 award agreements, totaling $7.56 billion in funding from the IIJA and IRA. These terminations exclusively impacted states that supported the Democratic candidate in 2024.

Impact on Rhode Island and Legal Arguments

In Rhode Island, the DOE canceled three grants totaling $14 million, which would have supported research on offshore wind development and other clean energy infrastructure. The coalition’s complaint argues that the Administration’s actions are unlawful because they violate the separation of powers and the Administrative Procedure Act. They are seeking a court order declaring the Administration’s actions unlawful and permanently preventing further interference with the programs.

Coalition of Attorneys General

Joining Attorney General Neronha in the lawsuit are the attorneys general of California, Colorado, Connecticut, Illinois, Maryland, Massachusetts, New Jersey, New York, Oregon, Vermont, Washington, and Wisconsin.