LANSING, Mich. (WILX) - Michigan Attorney General Dana Nessel has joined 18 other states and the District of Columbia in a lawsuit against the U.S. Department of Energy (DOE) over a new funding cap that would reduce support for important state-run energy programs.

The new DOE policy would limit how much federal funding states can use to cover administrative and staffing costs.

The coalition argues that this cap could make it harder to keep these programs running.

The lawsuit asks the court to cancel the cap and bring back the reimbursement rates that are required by law.

For years, federal law has required agencies like the DOE to work with states to agree on fair rates for covering the costs of federally funded programs.

But on May 8, 2025, the DOE announced a new policy that caps in

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