ARTICLE
19 November 2025

Democratic AGs Recharge State Energy Programs Through Win In Funding Cap Case

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A group of 19 Democratic AGs—along with the governors of Kentucky and Pennsylvania—secured a final judgment in their lawsuit challenging the U.S.
United States Michigan Energy and Natural Resources
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  • A group of 19 Democratic AGs—along with the governors of Kentucky and Pennsylvania—secured a final judgment in their lawsuit challenging the U.S. Department of Energy's 10 percent cap on reimbursements for state energy programs' indirect costs and fringe benefits.
  • As we previously reported, the U.S. District Court for the District of Oregon granted summary judgment for the plaintiffs upon finding that the reimbursement cap policy violated the Administrative Procedure Act. The court's final judgment vacates the policy in its entirety, orders DOE to set aside any award rejections based on the cap, prohibits the agency from denying any modifications to existing awards on that basis, and permanently enjoins DOE and its officers from implementing the policy or a substantially similar one.
  • Michigan AG Dana Nessel, who announced the judgment in a press release, called the ruling a major win for state energy programs, emphasizing that the decision reaffirmed federal funding obligations and prevented unlawful reductions in support for renewable-energy and energy-efficiency initiatives.
  • We previously covered the filing of the complaint in this case.

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