A U.S. federal judge orders the Trump administration to restore energy funds

A court demands that all funding linked to federal energy and climate laws, previously suspended, be immediately put back into circulation. This decision is based on a federal judgment challenging the legality of a freeze imposed by the American executive.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Judge John McConnell Jr., of the United States District Court for the District of Rhode Island, recently issued an injunction requiring the executive branch to release funds initially approved for energy programs. The order targets credits authorized by Congress under the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA). According to legal documents, the Trump administration allegedly froze part of these subsidies, citing a provisional regulatory framework. Democratic representatives maintain that this suspension deprived several states of financing already validated.

Court orders and official reactions

Attorneys general from multiple states have turned to the courts to challenge the legality of the freeze imposed by the White House. Judge McConnell found that this measure contravened the principle of separation of powers by contradicting congressional authority over public spending. In his decision, he specified that all relevant government agencies, including the Office of Management and Budget (OMB), must promptly restore access to the frozen funds. The federal government’s legal services justified the freeze by pointing to the need to assess the budgetary impact of these laws.

The coalition of Democratic-led states contends that projects under the IRA and the IIJA remained on hold, thus delaying the allocation of essential subsidies to modernize energy infrastructure. Judge McConnell noted that any refusal to implement the injunction would breach the already existing temporary restraining order. Federal authorities contested the scope of this injunction, arguing that certain instructions came under separate executive directives. However, the court reiterated that the distribution of funds was mandated explicitly by Congress.

Budgetary issues and economic implications

Defenders of the executive branch assert that the White House is acting under a broad framework aimed at reorganizing energy priorities. According to sources close to the matter, this approach entails a thorough review of programs focusing on both energy efficiency and infrastructure. Dissenting attorneys general argue that such a freeze directly impedes the release of projected financing, affecting several regional projects already in advanced development phases. Many political leaders now question the exact reach of the court’s order and how federal agencies plan to comply.

The U.S. Department of Justice, representing the executive branch, claimed that the temporary freeze originated from an earlier directive, distinct from the one overturned by the judge. Nonetheless, the ruling specifies that any suspension of financial support based solely on executive action, without legislative approval, violates constitutional principles. Requests from various states to reopen access to federal subsidies have already been submitted to the Environmental Protection Agency (EPA), which administers certain aspects of the IRA. The immediate future of these funds depends on strict adherence to the injunction.

Coal India issues tenders to develop 5 GW of renewable capacity, split between solar and wind, as part of its long-term energy strategy.
US utilities anticipate a rapid increase in high-intensity loads, targeting 147 GW of new capacity by 2035, with a strategic shift toward deregulated markets.
France opens a national consultation on RTE’s plan to invest €100 billion by 2040 to modernise the high-voltage electricity transmission grid.
Governor Gavin Newsom orders state agencies to fast-track clean energy projects to capture Inflation Reduction Act credits before deadlines expire.
Germany’s energy transition could cost up to €5.4tn ($6.3tn) by 2049, according to the main industry organisation, raising concerns over national competitiveness.
Facing blackouts imposed by the authorities, small businesses in Iran record mounting losses amid drought, fuel shortages and pressure on the national power grid.
Russian group T Plus plans to stabilise its electricity output at 57.6 TWh in 2025, despite a decline recorded in the first half of the year, according to Chief Executive Officer Pavel Snikkars.
In France, the Commission de régulation de l’énergie issues a clarification on ten statements shared over the summer, correcting several figures regarding tariffs, production and investments in the electricity sector.
A group of 85 researchers challenges the scientific validity of the climate report released by the US Department of Energy, citing partial methods and the absence of independent peer review.
Five energy infrastructure projects have been added to the list of cross-border renewable projects, making them eligible for financial support under the CEF Energy programme.
The Tanzanian government launches a national consultation to accelerate the rollout of compressed natural gas, mobilising public and private financing to secure energy supply and lower fuel costs.
The Kuwaiti government has invited three international consortia to submit bids for the first phase of the Al Khairan project, combining power generation and desalination.
Nigeria’s state-owned oil company abandons plans to sell the Port Harcourt refinery and confirms a maintenance programme despite high operating costs.
The publication of the Multiannual Energy Programme decree, awaited for two years, is compromised by internal political tensions, jeopardising strategic investments in nuclear and renewables.
The US Energy Information Administration reschedules or cancels several publications, affecting the availability of critical data for oil, gas and renewables markets.
Brazilian authorities have launched a large-scale operation targeting a money laundering system linked to the fuel sector, involving investment funds, fintechs, and more than 1,000 service stations across the country.
A national study by the Davies Group reveals widespread American support for the simultaneous development of both renewable and fossil energy sources, with strong approval for natural gas and solar energy.
The South Korean government compels ten petrochemical groups to cut up to 3.7 million tons of naphtha cracking per year, tying financial and tax support to swift and documented restructuring measures.
The U.S. Department of Energy has extended until November the emergency measures aimed at ensuring the stability of Puerto Rico’s power grid against overload risks and recurring outages.
Under threat of increased U.S. tariffs, New Delhi is accelerating its energy independence strategy to reduce reliance on imports, particularly Russian oil.

Log in to read this article

You'll also have access to a selection of our best content.