The fate of hundreds of clean energy projects hangs in the balance after court documents revealed that the Trump administration targeted California and other blue states solely for political reasons when it slashed funding for the initiatives last year.
Large companies, startups, utilities, universities and other nonprofits were among those that lost out on $7.6 billion in clean energy funding terminated by the White House in October. They include the University of California, the California Energy Commission, the Los Angeles Department of Water and Power and California’s nascent hydrogen hub, the Alliance for Renewable Clean Hydrogen Energy Systems, or ARCHES.
At the time, Trump administration officials said the grants were terminated because they “did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars.”
But in court documents filed as part of a lawsuit challenging the cuts, the Department of Energy states the selection of grants was “based solely on the political identity of the grant recipient’s state, i.e., whether the recipient’s location and/or place of performance was in a Blue State or a non-Blue State.”
It also concedes that neither the inclusion of ARCHES, nor any other grants in the October tranche, was “based on any programmatic, statutory, cost-reduction, or performance-based factor.”
California and the 15 other states that lost funding did not vote for Trump in the 2024 election.
Legal experts said such an action is unheard of.
“The government has stipulated that grants were cut off to states that voted against Trump. As far as I know, this blatant politics in cutting off grants is unprecedented. It also is illegal,” said Erwin Chemerinsky, dean of the UC Berkeley Law School and co-counsel in the lawsuit.
More projects were cut in California than any other state, about 79 out of nearly 300. They were all for clean energy, many to address climate change, and include investments in new battery plants, upgrades for the electrical grid and initiatives to take carbon out of the air. About $1.2 billion was slated for the hydrogen hub.
Money was also to go to West Biofuels in Woodland, CALSTART in Pasadena, Charge Bliss in Aliso Viejo, Rejoule in Signal Hill, Southern California Edison, the Imperial Irrigation District and Aera Federal LLC, among many others.
The lawsuit was brought by a group of faculty members and researchers at UC Berkeley and UC San Francisco, who were among those to lose research grants. A separate lawsuit was filed by California and a coalition of 13 other states in February.
The acknowledgment of political motivation is “startling — and it is particularly so when the administration has had these larger narratives about how they’re canceling grants that are about waste, fraud and abuse,” said Claudia Polsky, director of the Environmental Law Clinic at UC Berkeley and initiating counsel in the university case. “If they want to favor oil, coal and nuclear, and disfavor clean energy innovation, that’s their prerogative as the executive. But here we have stipulations saying that none of those things were true for these staggeringly consequential DOE grants.”
The lawsuit alleges that the government’s actions violate the Constitution’s equal protection clause, which prevents arbitrary discrimination, as well as the 1st Amendment in that it is targeting researchers for how their state voted.
“None of it was about a change in priorities,” Polsky said, noting that similar grants in red states were not canceled. “None of it was about fiscal stringency. None of it was about anything except punishing people who didn’t vote for Trump.”
Judge Rita F. Lin could order the federal funding to be reinstated, and indeed has already done so through some temporary preliminary injunctions. But many of the grantees are now in “purgatory” as the case proceeds toward a final ruling, Polsky said.
Many of the projects are complex, multi-year efforts that involve a hodgepodge of agencies, experts and partnerships, such as ARCHES, the state’s billion-dollar hydrogen hub awarded under President Biden. Officials with ARCHES could not immediately be reached for comment.
News of the funding cuts first broke last fall in a post on X from Russell Vought, director of the White House’s Office of Management and Budget.
“Nearly $8 billion in Green New Scam funding to fuel the Left’s climate agenda is being canceled,” Vought wrote. “The projects are in the following states: CA, CO, CT, DE, HI, IL, MD, MA, MN, NH, NJ, NM, NY, OR, VT, WA.”
At a House hearing in June, however, Energy Secretary Chris Wright said decisions were not made based on politics.
The Energy Department did not immediately respond to a request for comment.
“Secretary Wright looked me in the eye, under oath, insisting the decision to cancel California’s clean energy projects was ‘not political,’” Sen. Alex Padilla said in a statement to The Times on Monday. “The Administration’s own court filings tell a different story. These decisions jeopardize good-paying jobs, undermine American energy innovation, and drive up costs.”
Padilla is among 30 California lawmakers, including Sen. Adam Schiff and Rep. Zoe Lofgren (D-San José), who separately challenged the funding cuts as unlawful — writing in an October letter to the Energy Department’s independent Office of the Inspector General that the decision targeted blue states “for their perceived lack of support for President Trump.” The office subsequently launched an investigation into the claims.
“Any Trump official who lied and told the nation these clean energy grant cancellations had nothing to do with politics should resign,” Schiff said in a post on X after the latest court filings were revealed. “As the administration has now been forced to concede — these cancellations had everything to do with politics. Of the worst kind.”
A final ruling is expected in early November.
Times staff writer Jaweed Kaleem contributed to this report.
