California is taking a stand against the Trump administration by suing over cuts to clean energy funding. This marks the state’s 58th legal challenge against the president since he took office again last year.
The lawsuit, filed in the U.S. District Court for Northern California, contests the U.S. Department of Energy and the Office of Management and Budget for scrapping around $2.7 billion in funding. This money was intended for projects under President Biden’s Inflation Reduction Act and Bipartisan Infrastructure Law. Notably, many of these cuts impact states that didn’t support Trump in the 2024 election.
Key projects hit by the cuts include $1.2 billion for California’s hydrogen hub, aimed at producing clean energy to replace fossil fuels in tough sectors like trucking. Another $4 million was designated for energy-efficient building upgrades. Attorney General Rob Bonta highlighted that these funding cuts are “partisan retribution.” He warned they could lead to over 200,000 job losses, higher energy prices, and worsened pollution in California.
Bonta emphasized, “These aren’t optional programs — these are vital investments approved by bipartisan majorities.” He, along with attorneys general from several other states, wants the court to declare these cuts illegal and to stop further interference with these important programs.
Though representatives from the Energy Department and the Office of Management and Budget haven’t commented yet, Trump has been vocal about his administration’s intentions. On his first day back in office, he declared a “national energy emergency” and aimed to end the Green New Deal, a plan focused on transitioning to renewable energy sources.
Recent statements from Trump indicated a willingness to cut programs favored by Democrats as a government shutdown approached. In a bold move, the OMB director announced the cancellation of “nearly $8 billion in Green New Scam funding,” targeting projects in states that didn’t vote for Trump.
The Energy Department justified its funding cuts by stating many projects didn’t meet the nation’s energy requirements or offer good returns on taxpayer investments. Among those cuts was California’s hydrogen hub, a critical part of the national strategy to cut down on fossil fuels.
California’s Governor Gavin Newsom expressed concern, pointing out that these funding reductions could account for an estimated $3 billion in annual health costs due to air pollution. He reiterated California’s commitment to clean energy, stating that the state would fight to maintain jobs and infrastructure that have been threatened.
Since Trump’s election, about 165,000 jobs in the clean energy sector have been lost or delayed, as reported by Climate Power, a nonprofit tracking the energy crisis. This disruption could have generated enough electricity to power 13 million homes.
In another trend, residential electric bills increased significantly by about 12% in 2025, rising from 15.9 cents per kilowatt-hour to 17.8 cents. This change reflects ongoing challenges in energy pricing and availability.
For more on energy statistics and policies, the U.S. Energy Information Administration offers comprehensive data on electricity trends. Such insights highlight the ongoing struggle between state initiatives for clean energy and federal funding cuts that could jeopardize progress.
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