Judge Blocks New York's $75 Billion Climate Superfund Law

Chief U.S. District Judge Brenda Sannes ruled on August 31, 2026, that New York cannot enforce the Climate Change Superfund Act. The 2024 law, signed by Governor Kathy Hochul, sought to collect $75 billion over 25 years from major greenhouse gas emitters to fund coastal defenses and water systems. Judge Sannes found the measure was preempted by the federal Clean Air Act and violated the foreign affairs doctrine by attempting to collect damages from foreign producers.

The ruling follows a February 2025 lawsuit filed by a coalition of 22 Republican state attorneys general led by West Virginia Attorney General John McCuskey. The challenge was supported by the U.S. Department of Justice, the U.S. Chamber of Commerce, and the U.S. Environmental Protection Agency. Challengers argued the law was a politically motivated overreach that would burden energy producers and increase consumer costs.

The U.S. Department of Justice stated the decision protects American energy from state overreach following a national energy emergency declared by President Donald Trump. While the Hochul administration reviews the decision to determine next steps, the Justice Department continues to challenge a similar climate superfund law in Vermont.