Michigan Attorney General Dana Nessel announced on Apr. 2 that the U.S. Department of Energy has rescinded its policy capping reimbursement for state energy programs and agreed to dismiss its appeal, finalizing a legal victory for Michigan and other states.
The case was significant because it protected millions of dollars in funding for critical state energy programs that residents rely on. The federal government had attempted to limit administrative and staffing cost reimbursements, which threatened these essential resources.
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.” She continued, “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 filed suit against the Department of Energy after it introduced a policy capping reimbursement at ten percent of a project’s total budget. The U.S. District Court for the District of Oregon ruled in favor of the states in September 2025 by striking down this “indirect costs” policy. Following an initial appeal by DOE, the department has now dropped both its policy and its appeal.
According to the official website, Dana Nessel held the role of Michigan’s 54th attorney general. The Michigan Department of Attorney General advances social efforts through actions against human trafficking and support for vulnerable populations according to its official website. It also focuses on serving Michigan residents through public service initiatives and protection according to its official website.
The department exercises authority throughout Michigan with statewide authority to safeguard residents according to its official website. In addition, it influenced state policy by drafting legislation such as the Clean Slate law in 2019 that expanded expungement opportunities according to information from its official site.
This outcome ensures continued full federal funding for vital state-run energy initiatives across Michigan—a move expected to benefit local communities who depend on these services.