New York Attorney General Letitia James has joined a group of 12 other state attorneys general in filing a lawsuit against the Trump administration over its decision to terminate billions of dollars in federal funding for energy and infrastructure projects. The coalition claims that the administration unlawfully canceled funds approved by Congress under the Bipartisan Infrastructure Bill and the Inflation Reduction Act.
In October 2025, Russ Vought, Director of the Office of Management and Budget, announced via social media that nearly $8 billion in funding would be cut, referring to it as “Green New Scam funding to fuel the Left’s climate agenda.” Shortly after this statement, the U.S. Department of Energy eliminated hundreds of awards intended to support energy projects across states with Democratic leadership.
“Americans from coast to coast are feeling the impacts of rising utility bills and strained energy grids,” said Attorney General James. “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.”
The Bipartisan Infrastructure Bill (2021) and Inflation Reduction Act (2022) provided significant resources for clean energy initiatives. According to details from Attorney General James’ office, upon entering office, President Trump’s administration began efforts to eliminate these funds by targeting specific Department of Energy grant programs for termination. As a government shutdown approached at the end of September 2025, President Trump stated he could use this period “to do things during the shutdown that are irreversible,” including cutting programs favored by Democrats.
By early October 2025, more than 300 awards worth over $7.5 billion had been terminated or abandoned by DOE officials. These grants were intended to modernize electric grids, improve building efficiency, create jobs, and reduce pollution through clean energy research.
The sudden withdrawal has resulted in halted construction projects and research activities nationwide. In New York specifically, several projects focused on improving grid reliability have been affected.
Attorney General James and her counterparts allege that these terminations violate both administrative law procedures and constitutional principles regarding separation of powers. They argue that DOE used vague internal policies as justification for cutting off communication with awardees and leaving state-level initiatives unfinished.
The lawsuit seeks judicial intervention to stop what they describe as unlawful terminations and restore access to congressionally allocated funds.
Other attorneys general participating in this action represent California, Colorado, Connecticut, Illinois, Maryland, Massachusetts, New Jersey, Oregon, Rhode Island, Vermont, Washington State, and Wisconsin.
Letitia James leads the New York Attorney General’s Office, which acts as a public law enforcement agency advocating for civil rights enforcement and community well-being. The office provides services such as consumer fraud investigations and tenant dispute mediation throughout regional offices across New York State to address local legal issues. It also plays a role in environmental protection and upholds consumer protections.
