California leads 13-state lawsuit over $1.2B in canceled energy grants

California Attorney General Rob Bonta co-led a 13-state coalition filing suit in the US District Court for Northern California on February 18, 2026, challenging the Trump administration's termination of energy and infrastructure grants funded by Congress under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. California alone lost $1.2 billion, including funding for the ARCHES hydrogen hub program projected to create 200,000 jobs. The lawsuit argued that the administration violated the constitutional separation of powers by impounding congressionally appropriated funds, marking California's 58th lawsuit against the Trump administration.