AG James Sues to Stop Federal Cuts That Threaten State Energy Programs

Published Date: Aug 15, 2025

AG James led 18 other states and the District of Columbia in suing to block the U.S. Department of Energy (DOE) from imposing a new funding cap that slashes support for vital state-run energy programs, which could ultimately raise costs for New York households. The DOE policy would prevent states from using critical federal funds by limiting reimbursement for key administrative and staffing costs that have long been covered by these federal energy programs. Attorney General James and the coalition argue that by capping certain funding for these programs, DOE is jeopardizing states’ ability to keep them running, which threatens consumers’ access to critical benefits and savings. The attorneys general are asking the court to vacate this unlawful cap and restore the legally required reimbursement rates for these essential energy programs.

“New Yorkers count on state energy programs to save money on their bills, prepare homes for extreme weather, and move toward clean, affordable energy. The Department of Energy’s cuts threaten to pull the rug out from under those efforts. We’re taking them to court to protect the funding that keeps these programs running for families across New York.” -AG James

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