ATTORNEY GENERAL RAOUL SUCCESSFULLY PROTECTS STATE ENERGY PROGRAMS

ATTORNEY GENERAL RAOUL SUCCESSFULLY PROTECTS STATE ENERGY PROGRAMS

April 02, 2026

Chicago -Attorney General Kwame Raoul announced that the U.S. Department of Energy (DOE) rescinded its unlawful policy capping reimbursement for state energy programs, preserving a multistate coalition's victory in federal court and bringing the case to a close.

In August 2025, Attorney General Raoul and a coalition of states filed a lawsuit against the DOE over a new policy capping reimbursement for key administrative and staffing costs at 10% of a project's total budget, threatening millions of dollars in funding for state energy programs and jeopardizing states' ability to keep them running.

"The Department of Energy's unlawful policy threatened work being done in Illinois and across the nation to improve energy efficiency, strengthen energy resiliency and increase clean energy," Raoul said. "Improving energy efficiency by increasing clean energy is good for the environment, state economies and our workers. I am proud to have won this legal victory that protects these important efforts."

In September 2025, the U.S. District Court for the District of Oregon ruled in favor of the states and struck down the DOE's "indirect costs" policy. After initially appealing that decision, the DOE has now rescinded the policy and agreed to dismiss its appeal, ensuring that states will continue to receive full federal funding for these essential programs and bringing the litigation to a successful conclusion.

Joining Attorney General Raoul in filing the lawsuit were the attorneys general of California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Maine, Maryland, Michigan, Minnesota, New Mexico, New York, North Carolina, Oregon, Washington, and Wisconsin, as well as the governors of Kentucky and Pennsylvania.