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Court says Trump admin illegally blocked billions in clean energy grants to Democratic states

A federal court found the Trump administration violated equal protection by canceling $7.6 billion in clean energy grants to projects in 16 Democratic-leaning states.

  • In Washington, D.C., Judge Amit P. Mehta ordered the Department of Energy to restore seven grants worth $27.6 million after ruling the cancellations unlawful.
  • Vought's October 1, 2025 announcement on X claimed nearly $8 billion in grants was canceled, with defendants admitting selection was based on grantees' 'Blue States' location.
  • In October, 315 grants were terminated, ending support for 223 projects worth approximately $1.2 billion, with only three of 17 battery recycling projects in blue states cut.
  • The court rejected the DOE's Fifth Amendment defense, Department of Energy spokesman Ben Dietderich said officials disagree and 'stand by our review process,' and an internal Energy Department watchdog announced last month it will audit all cancellations.
  • With nearly all awardees based in states that voted against President Donald Trump, Judge Mehta found the ruling limits executive actions targeting recipients by state political affiliation and could affect more than 200 projects.
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The Business Journal broke the news in on Monday, January 12, 2026.
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