A federal court has struck down a U.S. Department of Energy policy that threatened to slash energy program funding across New York, handing a major legal victory to the state and dozens of its partners. On September 29, a U.S. District Court judge in Oregon ruled that the Department of Energy’s cap on reimbursement for staffing and administrative costs violated federal law. The decision protects roughly $1.6 million in state energy funding that supports everything from power grid resilience to consumer energy savings programs. The case was led by New York Attorney General Letitia James, along with 18 other state attorneys general and two governors. In New York, the proposed cap would have jeopardized 26 staff positions and forced the state to either absorb the unexpected costs or delay programs critical to energy stability and affordability.