The US District Court for the District of Columbia has ruled that the Department of Energy’s (DOE) cancellation of previously awarded project grants violated the Fifth Amendment’s guarantee of equal protection under the law.
The ruling follows the DOE’s decision in October 2025 to terminate billions of dollars in funding for clean energy and environmental projects across the United States.
On 1 October 2025, Russel Vought, director of the US Office of Management and Budget, announced via social media that nearly US$8 billion in federal funding had been cancelled, affecting projects in 16 states. One day later, the DOE issued a press release confirming it had terminated 315 financial awards supporting 223 projects, with a total value of US$7.56 billion.
In its decision, the court concluded that the grant terminations were unconstitutional.
“The court concludes that Defendants’ grant-termination decisions violate the Fifth Amendment. The court therefore enters judgment in favor of Plaintiffs on the equal protection claim but dismisses the First Amendment claim,” the judge wrote.
The plaintiffs in the lawsuit included the City of St. Paul, Minnesota; the Interstate Renewable Energy Council (IREC); Plug In America; Elevate Energy; the Southeast Community Organization; and the Environmental Defense Fund. All plaintiffs were either awardees or subawardees of DOE-funded environmental and clean energy projects.
According to the ruling, the terminated grants shared a common characteristic: all but one of the awardees were located in states that did not vote for US President Donald Trump in the most recent presidential election.
The judge cited admissions from the defendants acknowledging that political considerations influenced the termination decisions.
“Defendants admit that ‘[a] primary reason for the selection of which DOE grant termination decisions were included in the October 2025 notice tranche was whether the grantee was located in a “Blue State,”’” the judge wrote. “Defendants concede that the political identity of a terminated grantee’s state, including the fact that the state supported Vice President Kamala Harris in the 2024 election, played a preponderant role in the October 2025 grant termination decisions.”
Environmental Defense Fund General Counsel Vickie Patton welcomed the ruling, describing the grant cancellations as politically motivated and harmful to the public.
“The court recognized that the Trump Department of Energy vindictively canceled projects for clean, affordable energy that happened to be located in states disfavored by the administration, in violation of the constitutional guarantee of equal protection,” Patton said.
She added that the administration’s actions “violated the US Constitution, foundational American values, and basic decency,” while imposing significant costs on Americans who depend on clean and affordable energy for economic and health benefits.
In its conclusion, the court ordered the parties to submit a joint status report by 16 January 2026. The filing must indicate whether the plaintiffs continue to seek permanent injunctive relief and whether they intend to pursue attorney’s fees.
