AG Brown successfully protects state energy funding as federal government drops appeal

# Federal Government Drops Appeal on Energy Funding Cap

Washington Attorney General Nick Brown announced that the U.S. Department of Energy has rescinded a controversial policy and dropped its appeal in a case challenging reimbursement caps for state energy programs. The DOE agreed to dismiss the appeal on Thursday, concluding litigation that Brown's office initiated in August 2025.

The policy had capped reimbursement for administrative and staffing costs at 10 percent of project budgets, potentially eliminating millions in federal funding for state energy initiatives. Brown led a coalition of states in suing the DOE over the restrictions. In November 2025, the U.S. District Court for the District of Oregon ruled in favor of the states and struck down the "indirect costs" policy, which the DOE initially appealed before reversing course.

The resolution preserves state funding for wildfire mitigation planning, energy infrastructure protection, and energy efficiency programs. Brown stated the victory ensures continued support for initiatives that reduce energy costs for businesses, utilities, and local governments during a period of rising energy expenses.