California Sues Trump for Illegally Terminating $1.2 Billion Energy Funding

Feb 22, 2026, 2:30 AM
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In a significant legal move, California has filed a lawsuit against former President Donald Trump, challenging his administration's termination of $1.2 billion in funding for energy and infrastructure programs mandated by Congress. This lawsuit, co-led by California Attorney General Rob Bonta, was filed in the US District Court for the Northern District of California and argues that the terminations violate the constitutional separation of powers established by Congress.
The funding in question was allocated for the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) and the Resilient and Efficient Codes Implementation (RECI) program. The cancellation of these funds, according to officials, threatens to cut over 200,000 union jobs, increase energy prices, and exacerbate pollution levels that adversely affect public health.
Attorney General Bonta highlighted the implications of Trump's actions, stating, "The President is cherry-picking this funding at the expense of hardworking Americans and stifling innovation and the economy for the sake of partisan retribution". Governor Gavin Newsom echoed these sentiments, asserting that the termination undermines California's efforts to lead in clean energy and jeopardizes billions in potential health savings for communities affected by pollution.
The ARCHES hub was intended to create a robust network for clean hydrogen supply and demand, aimed at decarbonizing public transportation, heavy-duty trucking, and port operations. It was projected to eliminate approximately 2 million metric tons of carbon emissions annually, equivalent to the emissions produced by 445,000 gasoline-fueled cars.
In addition to the job losses, the California lawsuit underscores the economic impact of Trump's funding cuts. These terminations not only threaten immediate job security but are also expected to hinder California's long-term economic growth and environmental goals. The lawsuit claims that the decision to eliminate funding breaches laws established by bipartisan majorities in Congress, which were designed to support clean energy initiatives and infrastructure improvements.
The lawsuit is part of a broader coalition effort, with 13 attorneys general from various states joining California in this legal challenge. The coalition argues that the Trump administration's actions reflect a pattern of unlawful behavior that undermines federally approved programs designed to foster innovation and support a sustainable energy future.
The complaint also claims that the Trump administration's approach has been characterized by a lack of transparency and accountability. For instance, the Department of Energy's implementation of a vague "review" process was criticized as a means to disguise the elimination of federally funded projects. This review was seen as part of a broader strategy to attack programs that the administration viewed unfavorably, particularly those associated with renewable energy initiatives and climate action.
California has positioned itself as a leader in clean energy, achieving significant milestones such as generating two-thirds of its energy from clean sources in 2023. The state’s commitment to reducing greenhouse gas emissions is evident, with a 21% decrease since 2000, while its economy has simultaneously grown by 81% during the same period.
The outcome of this lawsuit could have far-reaching implications not only for California but also for national energy policy and the future of clean energy initiatives across the United States. As the legal battle unfolds, California officials have pledged to continue their fight for the jobs and environmental protections that they argue are at stake due to the unlawful actions of the Trump administration.
In summary, California's lawsuit against Donald Trump represents a significant pushback against federal actions perceived as detrimental to state interests and environmental goals. With the potential to redefine federal-state relations in energy policy, this case will be closely monitored as it progresses through the courts.

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