Illinois Attorney General Kwame Raoul announced on Apr. 2 that the U.S. Department of Energy has rescinded its policy capping reimbursement for state energy programs, ending a legal dispute and preserving federal funding for these initiatives.
The decision follows a lawsuit filed in August 2025 by Raoul and a coalition of states, which challenged the DOE’s cap limiting administrative and staffing reimbursements to 10% of project budgets. The coalition argued this restriction threatened millions in funding and jeopardized essential state energy programs.
“The Department of Energy’s unlawful policy threatened work being done in Illinois and across the nation to improve energy efficiency, strengthen energy resiliency and increase clean energy,” Raoul said. “Improving energy efficiency by increasing clean energy is good for the environment, state economies and our workers. I am proud to have won this legal victory that protects these important efforts.”
In September 2025, the U.S. District Court for the District of Oregon ruled in favor of the states, striking down what was known as the DOE’s “indirect costs” policy. After initially appealing that ruling, DOE has now withdrawn its appeal, ensuring continued full federal support for state-run energy programs.
Raoul was joined in filing the lawsuit by attorneys general from several other states as well as governors from Kentucky and Pennsylvania.
The Illinois Attorney General has advocated for vulnerable groups including workers, immigrants, and seniors according to its official website. The office also handles thousands of consumer complaints each year according to its official website.
Other responsibilities include protecting consumers, promoting safer communities, advocating on environmental issues according to its official website, extending advocacy across Illinois according to its official website, partnering with law enforcement agencies according to its official website, and offering services such as complaint filing related to consumer fraud or civil rights matters according to its official website.
