California Attorney General Rob Bonta announced on April 2 that the U.S. Department of Energy has agreed to dismiss its appeal regarding a court order that struck down its policy capping reimbursement for state energy programs. This decision preserves the states’ earlier victory in federal court and closes the case.
The outcome is significant because it ensures continued funding for state-run energy programs, which supporters say helps lower energy bills, create jobs, and modernize infrastructure. The ruling also addresses concerns about how administrative and employee benefit costs are reimbursed in federally funded projects.
“The Trump Administration is finally recognizing what my office has said all along: approved energy funding isn’t up for grabs,” said Attorney General Bonta. “Keeping these programs in place means lowering energy bills, creating good-paying American jobs, and modernizing the infrastructure we depend on. This is a clear legal victory — and a win for American workers, communities, and our energy future. My office remains unwavering in our commitment to hold this administration accountable when they break the law.”
California Energy Commission Chair David Hochschild also commented on the decision: “We are pleased with this decision. It is likely to be one among many more reinstating critical funding for energy programs that build new clean energy resources, strengthen the electrical grid, and help Californians save money on their energy bills.”
Last August, Attorney General Bonta joined with other attorneys general and governors to challenge the Department of Energy’s attempt to cap reimbursement of indirect costs at 10% of project budgets. The coalition argued that this cap violated federal law by disregarding previously negotiated cost rates between states and DOE. In September 2025, Judge Kasubhai ruled in favor of the states in U.S. District Court for Oregon; DOE later appealed but rescinded its policy before dropping its appeal.
Rob Bonta leads the California Attorney General’s office according to the official website. The office serves as California’s chief law enforcement authority focusing on enforcing state laws while advancing civil rights initiatives according to its official website. It operates statewide as part of California’s executive branch as outlined by state government sources.
The California Attorney General’s office promotes transparency through tools like OpenJustice—a portal publishing criminal justice data—and pursues policies related to civil rights, consumer economic security, and environmental justice according to information from its official site.
This legal development may set precedent for how future disputes over federal-state program reimbursements are handled across other jurisdictions.
