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Blue states sue Trump administration over canceled green funds

States allege the Trump administration unlawfully canceled $2.7 billion in energy grants approved by bipartisan Congress majorities, violating separation of powers and administrative law.

  • Wednesday, a coalition of states sued the Trump administration, challenging DOE and OMB decisions to cancel about $2.7 billion in grants.
  • A May 2025 DOE policy memorandum began a review, compiled a `hit list`, and led to terminations after the January 20, 2026, policy course, states allege.
  • In California, terminated grants included about $1.2 billion for ARCHES and $4 million for RECI, jeopardizing 200,000 jobs and nearly $3 billion in annual health savings.
  • The coalition, led by California Attorney General Rob Bonta, seeks a court ruling that the cancellations violate the separation of powers and the Administrative Procedure Act, and to stop interference with grant programs.
  • Most plaintiff states are governed by Democrats while Vermont, with a Democratic attorney general, is an exception, and plaintiffs cite Vought's `nearly $8 billion` post and the 16-state list as evidence of targeted cancellations.
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politicopro.com broke the news in on Wednesday, February 18, 2026.
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