The U.S. Justice Department has filed lawsuits against the states of New York and Vermont over newly enacted climate “Superfund” laws that seek to hold fossil fuel companies financially responsible for their contributions to climate change. In a joint legal effort, 24 Republican-led states have also joined separate suits challenging these laws, which they argue threaten energy production and national security.

Vermont enacted its Superfund law in May 2024, and New York followed later that year. The laws compel fossil fuel companies to pay a portion of climate-related damages and infrastructure investments. The law enacted by New York necessitates that fossil fuel companies pay roughly $75 billion in payments through 2050, around $3 billion annually. These payments would be based on the companies' historical share of greenhouse gas emissions.

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However, the Trump administration believes these laws are excessive. In April, President Trump signed an executive order directing the U.S. Attorney General to identify and challenge any state or local laws that hinder domestic energy production. The order specifically targeted climate change and ESG-focused policies, calling such laws unconstitutional and labeling them as “a ‘climate change’ extortion law.”

Following this directive, the U.S. Justice Department launched complaints against both New York and Vermont. U.S. Attorney General Pamela Bondi defended the lawsuits by stating, “These burdensome and ideologically motivated laws and lawsuits threaten American energy independence and our country’s economic and national security.” Bondi emphasized that the DOJ is committed to “Unleash American Energy” by challenging what it considers illegitimate regulations to produce energy that is reasonably priced and dependable, for the benefit of American consumers. 

In parallel, 24 state Attorneys General, led by West Virginia AG JB McCuskey, joined a lawsuit initiated by the U.S. Chamber of Commerce and the American Petroleum Institute against Vermont’s law. McCuskey, who previously filed a similar suit against New York’s law in February, criticized the legislation as harmful to consumers and energy producers.

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“Our coalition stood up to New York to stop this madness, and we have once again joined forces to stand up to Vermont,” McCuskey stated. “If this law stands, it’s those consumers who will be left paying the price for this ridiculous attempt by Vermont to line their coffers under the guise of ‘climate change.’”

The AGs warn that these Superfund laws could drive energy production away from the U.S. to countries with lower environmental standards, such as China, India, and Russia. They argue that the measures undermine American energy independence and could lead to higher energy prices for consumers.

The states joining the legal effort include Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, and Wyoming.

As legal battles intensify, the conflict emphasizes a deepening national divide over how to address climate change, and who should bear the financial burden.

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Source: Reuters