Michigan Attorney General Dana Nessel announced on Apr. 2 that the U.S. Department of Energy has rescinded its policy capping reimbursement for state energy programs and agreed to dismiss its appeal, ending a legal dispute over federal funding.
The decision means Michigan and other states will continue to receive full federal support for key energy initiatives, which officials say are essential for residents. These programs often provide vital resources that many people rely on, making the outcome significant for communities across the state.
Nessel said, “While I am relieved the Trump administration finally abandoned its illegal policy of limiting resources for critical energy programs, it is just one example in what is becoming a long list of unlawful actions where the federal government is trying to scrap negotiated agreements and shortchange states. We have been overwhelmingly successful in stopping these efforts, and we will continue to fight back against attempts to jeopardize programs residents rely on.”
In August 2025, Nessel and several other states sued the Department of Energy over a new rule that limited reimbursement for administrative and staffing costs at ten percent of a project’s total budget. The U.S. District Court for the District of Oregon ruled in September 2025 in favor of the states, striking down what was known as DOE’s “indirect costs” policy.
According to the official website, Dana Nessel held the role of Michigan’s 54th attorney general. The Michigan Department of Attorney General operates with statewide authority to protect residents across Michigan according to their official site. The department also advances social efforts through actions against human trafficking and supports vulnerable populations according to its website.
Additionally, as reported by their official website, the department influenced policy by drafting legislation such as the Clean Slate law in 2019 which expanded expungement opportunities. Its focus remains on serving Michigan residents through public service initiatives and protection efforts according to their official site.
With this litigation resolved, officials say they remain committed to safeguarding programs that benefit Michiganders.
