Oregon Challenges Trump Administration Cuts That Threaten the State’s Zero-Emission Deadlines and Grid Upgrades
Oregon Attorney General Dan Rayfield and a coalition of 12 other state AGs yesterday filed a lawsuit challenging the Trump Administration for terminating billions of dollars in energy and infrastructure funding nationwide.
In a news statement, Rayfield points out that research into energy efficiency and production will ultimately drive down the prices. However, cutting these projects will not save money and will instead drive up monthly bills paid by Oregonians.
The Coalition Says the Withdrawal of Funds is Illegal
The coalition has slammed the withdrawal of funding as illegal, as Congress had mandated the energy and infrastructure programs into law.
Their lawsuit challenges the decision to terminate energy and infrastructure funding made by the U.S. Department of Energy (DOE) and its Secretary, Chris Wright, the Office of Management and Budget (OMB), and its Director, Russell Vought.
The DOE Has Unlawfully Terminated Three Major Projects in Oregon
In Oregon, the DOE has ‘unlawfully’ terminated three major projects, which will severely impact Oregon State University’s funding of more than $125 million for the following projects:
- $2,499,876 for a “Community Benefits from Offshore Wind Development” project to examine how rural coastal communities understand and experience energy development.
- $115,225,626 connected to a Bipartisan Infrastructure Law project to accelerate grid edge computing and distributed energy integration.
- $8,000,000 for high-resolution offshore wind resource assessments and forecasting research.
Source: Multistate complaint filed Feb 18 2026 / California et al v Wright et al / section Harms to Oregon
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AG Says Lack of Funds Will Disrupt Oregon Workforce Training and Education Opportunities for Students
Rayfield says the lack of funding will not only halt critical research and infrastructure upgrades, but also disrupt workforce training and educational opportunities for Oregon students.
The projects support faculty, post-doctoral researchers, graduate students, and administrative staff at Oregon State University, as well as collaborations with Oregon Sea Grant, Renewable Northwest, the Affiliated Tribes of Northwest Indians, and community colleges across the state.
The lawsuit alleges that the Trump Administration’s decision violates the separation of powers and the Administrative Procedure Act. The coalition states that programs were created by statutes, and federal agencies are duty-bound to execute laws mandated by Congress.
The Coalition Wants the Court to Declare the Trump Administration’s Actions as Unlawful
The coalition is asking the court to declare the Administration’s actions unlawful and permanently block interference with these programs.
“At a time when energy demand is rising, and families are already worried about costs, this funding helps Oregon make the most out of our energy resources,” says Rayfield.
In terms of House Bill 2021, Oregon has set itself deadlines to reach zero emissions by 2040. Clean electricity deadlines are 80% by 2030, 90% by 2035, and 100% by 2040.
These are the state deadlines Oregon utilities are supposed to hit under HB 2021.
| Deadline | Required emissions reduction for electricity sold in Oregon | Baseline reference | Who it applies to |
|---|---|---|---|
| By 2030 | 80% below baseline emissions levels | Average emissions in 2010 to 2012 | Large investor owned utilities and electricity service suppliers |
| By 2035 | 90% below baseline emissions levels | Average emissions in 2010 to 2012 | Large investor owned utilities and electricity service suppliers |
| By 2040 | 100% below baseline emissions levels | Average emissions in 2010 to 2012 | Large investor owned utilities and electricity service suppliers |
Losing federal funding could be financially crippling for Oregon to reach its emission goals or its deadlines. Oregon has allocated separate DOE grid-resilience grants to help utilities cover the cost of upgrades needed to stay on track.