New York Judge Blocks the State’s Climate Change Superfund Act

Washington, D.C. (Aug. 31, 2026) — The U.S. District Court for the Northern District of New York struck down the state’s Climate Change Superfund Act, ruling that New York may not impose strict liability on energy companies for their alleged contributions to global greenhouse gas emissions. The Climate Change Superfund Act, which New York enacted in 2024, purported to impose billions of dollars on domestic and foreign energy companies that extract fossil fuels or refine crude oil.

A coalition of states and trade organizations sued, alleging the act is preempted by the federal Clean Air Act and by the federal foreign affairs power, and that the act violates the Constitution. After the case was consolidated with a suit filed by a different coalition of trade organizations, the Justice Department filed a statement of interest and presented oral argument in support of the plaintiffs. The court agreed that the New York Climate Change Superfund Act is preempted by the Clean Air Act and by the federal foreign affairs power, and the court held that the Climate Act is invalid.

“The court held that federal law preempts New York’s attempt to regulate global environmental concerns, marking a significant step in advancing President Trump’s energy agenda and lowering energy prices for Americans,” said Associate Attorney General Stanley Woodward. “We will continue to fight to uphold the rule of law, unleash American energy and protect our national security.”

Trump directed the attorney general to take action to stop the enforcement of state laws that “unreasonably” burden domestic energy development.

The government has also filed a complaint in the U.S. District Court for the Southern District of New York challenging the same Climate Change Superfund Act. The government has also filed a complaint in the U.S. District Court for the District of Vermont challenging Vermont’s Climate Superfund Act, which seeks to recover an unspecified amount from the same energy companies targeted by the New York Act. In those suits, the government alleges that the New York Climate Change Superfund Act and the Vermont Climate Superfund Act are preempted by the federal Clean Air Act and by the federal foreign affairs power, and that they violate the U.S. Constitution.