California Attorney General Rob Bonta, in collaboration with the Governor’s Office of Business and Economic Development and the California Energy Commission, has filed a lawsuit against the Trump Administration for ending funding to several energy and infrastructure programs. The legal action, supported by 13 attorneys general, was submitted to the U.S. District Court for the Northern District of California. It challenges decisions made by the United States Department of Energy (DOE), DOE Secretary Chris Wright, the Office of Management and Budget (OMB), and OMB Director Russell Vought to halt billions of dollars in federal awards.
The lawsuit specifically addresses cuts in California totaling $1.2 billion for ARCHES (Alliance for Renewable Clean Hydrogen Energy Systems) and $4 million from the Resilient and Efficient Codes Implementation (RECI) program. According to Attorney General Bonta, these actions violate constitutional separation of powers because Congress approved this funding through bipartisan legislation.
“The President claims to seek ‘American Energy Dominance’ but, in California, his unlawful termination of over $1.2 billion in total funding for crucial clean energy projects means over 200,000 union job cuts, rising energy prices, and higher rates of pollution that wreak havoc on our health,” said Attorney General Bonta. “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. My office will continue to hold the President and his administration accountable for breaking the law.”
Governor Gavin Newsom commented: “We will not allow Trump to sell out our future to his biggest donors. Trump didn’t just tear up a contract: he defied Congress, jeopardized more than 200,000 good-paying jobs, and robbed billions of dollars in health savings from communities that have been hit the hardest by pollution. We’re not letting that stand. California will fight for these jobs, this infrastructure, and the global clean energy competitiveness that the Trump administration has ceded to China.”
Dee Dee Myers, Senior Advisor to Governor Newsom and Director of GO-Biz stated: “The cancellation of ARCHES’ funding was a shortsighted decision from the Trump Administration, one that threatens the promise of California’s hydrogen market while the rest of the world surges ahead in its development. Today’s filing is yet another sign that we will not back down from this threat—we’ll keep pushing forward in our effort to create a carbon-neutral economy that benefits all California’s residents.”
CEC Chair David Hochschild added: “California is building the electric grid of the future, and we are doing so by slashing emissions, advancing innovation, and focusing on affordability for consumers. The Trump Administration’s termination of grants like ARCHES, RECI, and so many other innovative clean energy programs undermine energy independence and make electricity more expensive for consumers. Not on our watch.”
On January 20th, 2025—President Trump’s first day back in office—he issued executive orders declaring a “national energy emergency” and announced an end to what he called “the Green New Deal.” This led DOE officials to compile a list targeting certain federally funded projects created under laws such as IIJA (Bipartisan Infrastructure Law) and IRA (Inflation Reduction Act). In May 2025 DOE announced a new review process which ultimately resulted in terminating several major awards.
During September 2025 as a government shutdown approached, President Trump publicly indicated intentions to use it as an opportunity to cut Democratic-backed programs permanently. Following this statement OMB Director Russell Vought posted online about terminating nearly $8 billion labeled as “Green New Scam” funding affecting states led by Democrats.
In response to these terminations—which affected projects funded under high-profile bipartisan legislation—the coalition alleges violations both under constitutional separation-of-powers principles as well as under administrative law requirements.
ARCHES was intended as part of efforts replacing fossil fuels with clean hydrogen across utilities transportation sectors within California; its cancellation impacts job creation estimates exceeding 200 thousand positions along with projected public health cost savings nearing $3 billion annually due improved air quality standards previously anticipated.
RECI aimed at supporting updated building codes promoting lower emissions reduced utility bills greater grid resilience; its loss means fewer opportunities for high-wage employment continued upward pressure on household energy costs increased greenhouse gas output poorer indoor air quality broader negative effects on public health statewide.
Attorney General Bonta leads this legal challenge together with Colorado Attorney General Phil Weiser Washington Attorney General Nicholas Brown joined by their counterparts from Connecticut Illinois Maryland Massachusetts New Jersey New York Oregon Rhode Island Vermont Wisconsin.
Rob Bonta leads the California Attorney General’s office, which serves as the state’s chief law enforcement authority across all regions within California. The office is responsible for enforcing state laws protecting public rights safety advancing policies related civil rights consumer protection environmental justice as described on its official website. As part of California’s executive branch, it also promotes transparency informed policy making through resources such as OpenJustice portal publishing criminal justice data.
