Groups Sue Administration for Targeted, Unconstitutional Cancellation of Federal Funding for Projects Expanding Clean, Affordable Energy

(Washington, D.C. - November 10, 2025) A coalition including a Midwestern city and energy and environmental organizations - all harmed by the U.S. Department of Energy and Office of Management and Budget's targeted retribution because of the states where they are located - filed a lawsuit in the U.S. District Court for the District of Columbia today for the administration's violation of their First and Fifth Amendment Constitutional rights.

The lawsuit challenges the cancellation of hundreds of millions of dollars in Congressionally approved grants from the Department of Energy (DOE) for vital energy projects - for reasons the administration clearly and publicly stated were to punish the states where those organizations are located. The projects that were cancelled were designed to expand clean, affordable energy solutions for numerous communities through bridge-building collaboration - people working together on practical solutions to save consumers money and reduce pollution.

On October 1st, U.S. Office of Management and Budget Director Russel Vought listed 16 states where cancellations would occur. The next day, more details emerged showing $7.5 billion in cancelled grants and awards from 321 projects - every single one of which is located in a state that voted for the Democratic candidate in the 2024 election, and all of which have Senators who caucus with the Democratic party.

"Under bedrock equal protection principles, the government must have some legitimate state interest when it treats one group differently from a similarly situated group. Bare animus, political or otherwise, is not a legitimate government interest," the groups say in their complaint. "Animus and political retribution are the only explanations for the differential treatment of terminated and non-terminated DOE awardees here." (Complaint, page 3)

The City of St. Paul Minnesota, Elevate Energy, Interstate Renewable Energy Council, Plug In America, the Southeast Community Organization, and Environmental Defense Fund - all of whom lost grants, or partnered with groups that lost grants, because of the administration's targeted, vindictive, and damaging action - filed today's lawsuit.

The groups' complaint argues that the administration's action violates both the Due Process Clause of the Fifth Amendment, under which Americans are entitled to equal protection under the law, and the First Amendment, which prohibits government officials from wielding their power selectively to punish or suppress speech.

In stark contrast to the administration's vindictive action, the organizations that filed today's lawsuit were working collaboratively under their grants to advance solutions "including projects designed to make lives more affordable by lowering the cost of energy, expand access to clean affordable energy, and ensure healthier lives through common sense measures to reduce pollution." (Complaint, page 4)

The complaint also points out that the government's damaging cancellations will result in substantial harms:

"[It] will hurt consumers and communities, increase prices, and result in thousands of lost jobs. It removes support for innovation of technologies that are critical to ensuring clean, reliable and affordable energy, and inhibits the collaboration among industries, states, academic institutions, and nonprofits that was intended to take place under the cancelled awards." (Complaint, page 18-19)

QUOTES

"The groups filing this lawsuit, and many others, were working collaboratively with public health experts, scientists, cities and other problem solvers who were rolling up their sleeves to expand clean affordable energy in the United States. The administration's cancellations were targeted at projects that happen to be in disfavored states and have nothing at all to do with the vital benefits of these projects in expanding clean affordable energy. That targeting violates the U.S. Constitution, foundational American values, and basic decency in how we treat each other." - Vickie Patton, General Counsel, Environmental Defense Fund

"This unlawful termination interrupted a successful campaign that introduced millions of people to a transportation solution that reduces energy costs, positions the U.S. as a leader in technological innovation, creates hundreds of thousands of jobs, makes the grid more efficient, and improves air quality and public health. When we were awarded this unique project, we hired new staff, entered into new partnerships, and expanded the creation of innovative educational content on every front. This decision, if permanent, will result in layoffs and a lost opportunity for our country. - Joel Levin, Executive Director, Plug In America

"The cancellation of this vital federal funding is not only unconstitutional political retribution but a direct and damaging blow to the residents of St. Paul, particularly those in District 1. Our community, including the neighborhoods on the east side of St. Paul, is home to a diverse population of people from many different countries, ethnicities, and backgrounds. The electric car program that was targeted for cancellation was specifically designed to expand into our low and moderate-income neighborhoods, offering residents quality, affordable transportation and the freedom it provides. ​This vindictive, politically motivated shutdown directly hurts the residents of St. Paul and removes crucial sustainability measures intended for climate-impacted communities. These projects were about practical, common-sense solutions to lower energy costs, create jobs, and ensure healthier lives. The administration's action shows a shocking disregard for the needs of our diverse communities and the foundational principle of equal protection under the law." - Ianni Houmas, Executive Director, Southeast Community Organization