Attorney General Bonta Secures Permanent Ruling Blocking Federal Cuts for State Energy Program Funding

OAKLAND - California Attorney General Rob Bonta secured a major victory which completely halted the Trump administration's unlawful attempt to slash funding for critical energy programs. In a ruling from the bench, Judge Mustafa Kasubhai of the U.S. District Court for the District of Oregon granted the attorney general's motion for summary judgment, concluding that the Trump Administration violated the law, specifically the Administrative Procedure Act (APA), when the administration attempted to unlawfully deny states critical funds by limiting reimbursement for key administrative and staffing costs that have long been covered by federal energy programs. These programs provide essential support for state run initiatives that improve energy efficiency, lower household utility costs, and promote clean energy innovation, particularly in underserved communities.

"The court delivered a decisive and unequivocal victory for the rule of law," said Attorney General Bonta. "State energy programs are not political bargaining chips. The President can't just wake up one day and illegally pull funding for these critical programs. These programs are the engines of job creation, resilience, and progress - from weatherizing homes in our communities to helping small businesses lower their energy costs. They empower states to lead in the fight against climate change while creating opportunities in every corner of our country. We have, and will continue to hold the President and his administration accountable for breaking the law."

Last month, Attorney General Bonta, alongside the California Energy Commission, joined a coalition of 18 other attorneys general and two governors in a lawsuit to block DOE's attempt to cap reimbursement of indirect (administrative) and fringe (employee benefit) costs at 10% of a project's budget. The attorneys general argued that DOE's cap violated federal law, disregarded states' negotiated cost rates, and would undermine staffing and operations for state energy agencies. Judge Kasubhai agreed with the states and found the funding cap illegal and in violation of the reimbursement regulations for DOE grants.