Overview
- California, Colorado and Washington lead a 13-state lawsuit filed Feb. 18 in the U.S. District Court for the Northern District of California against the Department of Energy, Secretary Chris Wright, the Office of Management and Budget and Director Russell Vought.
- The complaint seeks to restore awards including $1.2 billion for California’s ARCHES hydrogen hub and $4 million for the RECI building-codes program, part of about $2.7 billion in canceled funding across the plaintiff states.
- Plaintiffs allege violations of the Constitution’s separation of powers and the Administrative Procedure Act, arguing the executive branch cannot terminate programs and awards appropriated by Congress.
- DOE and OMB have defended the terminations, saying hundreds of awards did not adequately advance national energy needs, lacked economic viability or failed to provide sufficient returns for taxpayers.
- State officials cite political targeting, pointing to Vought’s Sept. 2025 post labeling cuts as a 'Green New Scam' in 16 Democratic-leaning states, and they warn of job losses near 200,000, ARCHES layoffs and foregone health-cost savings estimated at nearly $3 billion annually.