Energy Department Drops Appeal of Loss on State Funding Limits

The Energy Department dropped its appeal of a court decision blocking the agency’s limits on financial assistance for state energy programs.

“While I am relieved the Trump administration finally abandoned its illegal policy of limiting resources for critical energy programs, it is just one example in what is becoming a long list of unlawful actions where the federal government is trying to scrap negotiated agreements and shortchange states,” said Michigan Attorney General Dana Nessel (D) in a statement.

States including New York, California, and Oregon sued DOE in August 2025 for restricting financial assistance covering state agencies’ indirect costs, ...