James Halts Illegal DOE Cuts to NY Energy Programs

New York Attorney General Letitia James has scored a decisive victory in the fight against federal funding cuts for state energy programs. The U.S. District Court for the District of Oregon ruled that the Department of Energy’s (DOE) cap on reimbursement costs is unlawful, preserving millions in state energy funding.

In a landmark decision, Judge Mustafa Kasubhai granted summary judgment to the attorneys general, concluding that the DOE policy violated the Administrative Procedure Act. The policy aimed to slash reimbursements for staffing and administrative costs, threatening critical energy programs across New York.

“My office has successfully stopped the federal government from cutting off funding that New Yorkers rely on,” James stated. “These programs are vital for saving families money on their energy bills, preparing homes for extreme weather, and building a resilient future.”

The lawsuit was led by James and a coalition of 18 other attorneys general, along with two governors. They challenged the DOE’s attempt to cap reimbursement costs at 10 percent of a project’s budget, arguing that it disregarded states’ negotiated rates and would undermine state energy agencies.

New York faced a $1.6 million shortfall due to the policy, which could have led to the loss of 26 staff positions. The funding supports essential services like preparing for extreme weather events, setting electricity prices, and ensuring grid reliability.

Joining James in this lawsuit were attorneys general from Colorado, Minnesota, Oregon, California, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Nevada, New Mexico, North Carolina, Washington, Wisconsin, the District of Columbia, as well as governors from Kentucky and Pennsylvania.

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