Attorney General Raoul Says Federal Energy Funding Policy Rescinded After Court Victory

CHICAGO — Illinois Attorney General Kwame Raoul announced that the U.S. Department of Energy has rescinded a policy that would have capped reimbursement for state energy programs after a federal court ruling and a multistate lawsuit, ending the case and preserving full federal funding for the programs. Raoul and a coalition of states sued the Department of Energy in August 2025 over a rule that limited reimbursement for administrative and staffing costs to 10 percent of project budgets, which officials said threatened millions in funding and program operations. A federal court ruled in favor of the states in September 2025 and struck down the policy, and the Department of Energy later dropped its appeal and agreed to end the rule, securing continued funding for state energy efficiency and clean energy programs.