Three States File Lawsuit to Force Release of Clean Energy Funding

Wednesday, February 18, 2026 at 7:45 PM

California, Colorado and Washington have filed a federal lawsuit demanding the Trump administration release congressionally approved grants for renewable energy projects. The legal action comes after the administration halted funding under environmental laws, including California's loss of $1.2 billion for a hydrogen energy program.

Three western states filed a federal lawsuit Wednesday demanding the Trump administration distribute congressionally approved grants for renewable energy initiatives that have been frozen by the new administration.

California, Colorado and Washington launched the legal challenge after the Trump administration halted funding previously allocated through environmental legislation, including the Inflation Reduction Act, according to California’s attorney general’s office. The funding freeze represents part of a wider administration strategy to reduce support for renewable energy sources like wind and solar power while focusing on boosting domestic oil production.

California stands to lose $1.2 billion in federal support for its Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) program, which was designed to transition utilities, public transportation, trucking operations and ports away from fossil fuel dependency, according to Attorney General Rob Bonta.

The states argue that federal agencies are legally obligated to implement congressional legislation. “Congress has the power of the purse, not the executive branch, and Congress already appropriated this funding,” Bonta explained during a Tuesday interview before the lawsuit announcement. “It’s as simple as” federal agencies must follow the law, he added.

This legal action represents the latest in an ongoing series of court challenges California and other states have mounted against Trump administration policies across multiple policy areas.

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