KEY IMPACT POINTS:
- The U.S. Justice Department has filed lawsuits against New York and Vermont over laws that would require fossil fuel companies to pay for climate-related damages.
- A coalition of 24 Republican-led states has also joined legal efforts to block Vermont’s Superfund law, warning of economic risks to the energy sector.
- President Trump’s executive order directs aggressive federal action against state-level climate laws viewed as unconstitutional or burdensome to energy production.
Federal Lawsuits Filed Against New York and Vermont
The U.S. Department of Justice (DOJ) announced this week that it has filed complaints in federal court against the states of New York and Vermont, challenging the constitutionality of their recently enacted climate “Superfund” laws. These laws seek to assign financial liability to fossil fuel companies for the states’ climate-related costs, based on their historical greenhouse gas emissions.
New York’s law, passed in 2024, is expected to raise approximately $75 billion through 2050. Vermont enacted its version earlier the same year, with damages to be determined. Both laws aim to fund infrastructure investments and adaptation efforts related to climate change.
According to the DOJ’s official press release, the complaints allege that the laws are preempted by the federal Clean Air Act, infringe on federal authority over foreign affairs, and violate the U.S. Constitution.
U.S. Attorney General Pamela Bondi stated:
“These burdensome and ideologically motivated laws and lawsuits threaten American energy independence and our country’s economic and national security. The Department of Justice is working to ‘Unleash American Energy’ by stopping these illegitimate impediments to the production of affordable, reliable energy that Americans deserve.”
Executive Order 14260 Prompts Legal Action
The lawsuits were filed following Executive Order 14260, signed by President Trump in April 2025. The order directs the Attorney General to identify and challenge state and local laws that the administration considers to unreasonably burden domestic energy development.
The executive order references the New York and Vermont laws directly, labeling them as examples of a “climate change extortion law.”
Acting Assistant Attorney General Adam Gustafson commented:
“When states seek to regulate energy beyond their constitutional or statutory authority, they harm the country’s ability to produce energy and they aid our adversaries.”
24 States Join Separate Suit Against Vermont
Separately, a coalition of 24 state attorneys general, led by West Virginia Attorney General JB McCuskey, joined a lawsuit originally filed by the U.S. Chamber of Commerce and the American Petroleum Institute to challenge Vermont’s Superfund law.
In a public statement, McCuskey said:
“Our coalition stood up to New York to stop this madness and we have once again joined forces to stand up to Vermont to ensure America’s energy independence and to protect consumers nationwide. If this law stands, it’s those consumers who will be left paying the price for this ridiculous attempt by Vermont to line their coffers under the guise of ‘climate change.’”
The states joining the suit include: Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, and Wyoming.
Additional Legal Action in Hawaii and Michigan
The DOJ also filed complaints this week against Hawaii and Michigan. According to the DOJ, these states are preparing to pursue climate-related lawsuits against fossil fuel companies. The federal government argues that such actions are preempted by the Clean Air Act and could have national implications for energy prices and production.
The DOJ stated:
“Such lawsuits burden energy production, force the American people to pay more for energy, and make the United States less able to defend itself from hostile foreign actors.”
The federal government is seeking injunctions and judicial declarations against the enforcement of the New York and Vermont laws, and preemptive blocks against legal actions in Hawaii and Michigan.
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