Trump administration faces lawsuit over cancelled clean energy grants

The Trump administration has acknowledged in a federal court filing that it recommended cancelling billions of dollars in clean energy grants based on the political identity of states, prompting criticism from Democratic lawmakers.

According to the filing, reported by The New York Times, the Department of Energy recommended ending more than 600 grants awarded in states won by Kamala Harris in the 2024 election and represented by two Democratic caucusing senators.

The Office of Management and Budget later terminated 284 grants in October 2025.

In the 15 July filing, the Department of Energy said it "accepts that the inclusion of grants in the October notice tranche 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."

The decision is being challenged in a class action lawsuit brought by a group of University of California researchers, who argue the grants were cancelled for political reasons.

Senate Minority Leader Chuck Schumer criticised the move, writing on X: "Trump admits he’s ripping the rug out from under hardworking families so he can get revenge on the Americans who didn’t vote for him. It’s sick and deranged."

The administration has not responded to the political criticism, while the legal challenge over the cancelled grants continues.