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Oregon AG, Others File Lawsuit in Eugene to Stop Federal Cuts Threatening State Energy Programs

Eighteen state officials challenge a DOE policy capping administrative reimbursements at 10%, arguing it undermines efforts to reduce energy costs and promote clean energy programs.

  • On Friday, Letitia James led 18 other states and D.C. in suing the U.S. Department of Energy in Oregon to block a proposed funding cap, James said.
  • The DOE announced on May 8, 2025 a policy capping indirect and employee benefit costs at 10% of a project’s total budget, followed by a June 30 policy flash limiting overhead claims.
  • The DOE policy would cut critical funding to just $314,000, limiting reimbursement for key administrative and staffing costs, James said, as critics call it an unlawful limit.
  • James said the attorneys general are asking the court to vacate the unlawful cap and restore reimbursement rates to protect programs for New York families.
  • Pointing to recent court rulings, the coalition argues the policy violates federal regulations requiring negotiated indirect cost rates, which federal courts have recently struck down.
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States and the District of Columbia asked a federal court to declare illegal and annul the Department of Energy policy

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KGW 8 broke the news in Portland, United States on Friday, August 15, 2025.
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