- Executive order seeks to override state-level climate and emissions policies
- Targets laws in New York, California, Vermont, and others that regulate fossil fuels
- Move aligns with Trump’s broader push to expand fossil fuel production and dismantle climate regulations
What’s happening
U.S. President Donald Trump signed a sweeping executive order on Tuesday directing the federal government to block state-level climate policies that restrict fossil fuel use or promote environmental regulation.
The order, titled Protecting American Energy from State Overreach, claims that such state laws are “burdensome and ideologically motivated” and violate constitutional principles by “projecting the regulatory preferences of a few States into all States.”
“Americans must be permitted to heat their homes, fuel their cars, and have peace of mind — free from policies that make energy more expensive and inevitably degrade quality of life,” the order states.
What the order does
The executive order instructs the U.S. Attorney General to:
- Identify all state and local laws or lawsuits that regulate domestic energy resources or address climate change, ESG, or carbon emissions
- Take legal action to stop enforcement of any such laws deemed unconstitutional, preempted by federal law, or otherwise “unenforceable”
- Report back to the President within 60 days with findings and recommendations for further legislative or executive action
The order also emphasizes that these laws are viewed by the Trump administration as threats to American energy dominance, economic strength, and national security.
Which laws are being targeted
The order singles out:
- New York’s “climate change extortion law”, which imposes retroactive penalties on fossil fuel companies for past emissions
- Vermont’s similar policy, described as “extorting” companies for emissions contributions globally
- California’s cap-and-trade program, which the order claims “punishes carbon use” and forces businesses to buy credits under “impossible caps”
- State-led climate liability lawsuits, which the administration argues could result in “crippling damages”
The political and industry reaction
The move was immediately criticized by Democratic governors, including Kathy Hochul (NY) and Michelle Lujan Grisham (NM), who co-chair the U.S. Climate Alliance. In a joint statement, they said:
“We will keep advancing solutions to the climate crisis… that grow the clean energy economy and make our future healthier and safer.”
The American Petroleum Institute, meanwhile, praised the order, saying it would protect energy producers from “unconstitutional efforts” by states like New York and California.
Why it matters
This order marks a significant expansion of federal authority over state climate policy, reinforcing President Trump’s pro-fossil fuel agenda and positioning climate-related regulation as an economic and national security threat.
It also raises legal questions about federalism, as it seeks to override state laws that have historically operated under broad environmental authority.
If enforced, the order could stifle state innovation on climate action, set up high-stakes legal challenges, and signal an aggressive rollback of environmental protections during Trump’s term
Q&A Explainer: What Trump’s Executive Order Means for Climate and State Laws
What does the executive order actually do?
It directs the U.S. Attorney General to identify state laws, policies, and lawsuits related to climate change, ESG, and emissions that may be unconstitutional or conflict with federal authority — and take legal action to stop them. The order prioritizes laws that:
- Penalize fossil fuel companies (e.g. fines or lawsuits for past emissions)
- Impose carbon taxes or caps
- Delay energy permitting
- Reference ESG or environmental justice principles
Who does this impact?
Primarily:
- State governments, especially those with aggressive climate policies (e.g., New York, Vermont, California)
- Energy companies operating across state lines
- Investors and insurers involved in ESG-aligned strategies
- Clean energy and climate advocacy groups
Why is this happening now?
The move is part of Trump’s broader agenda to boost fossil fuel production, dismantle climate regulations, and assert federal dominance over state-led climate action. It follows his recent orders to increase coal output and roll back climate-era rules.
Is this legal?
That’s likely to be challenged. The order sets up potential legal showdowns between the federal government and states — raising key questions about federalism, states’ rights under the Tenth Amendment, and the limits of federal preemption.
Could this affect lawsuits against oil companies?
Yes. The order specifically targets climate-related tort lawsuits (like nuisance or damages claims) that states have filed against fossil fuel companies. It directs the DOJ to assess whether those cases should be stopped.
What happens next?
- The Attorney General must submit a report to the President within 60 days
- Legal battles are likely to follow — particularly if the DOJ challenges ongoing state litigation or regulations
- Environmental and state leaders may respond with countersuits or new legislation asserting state authority
Timeline: Key Moments in Federal-State Climate Conflict
| Date | Event |
|---|---|
| 2015 | Obama launches the Clean Power Plan, empowering states to cut power-sector CO₂ emissions |
| 2017 | Trump begins dismantling federal climate policies and promotes “energy dominance” |
| 2018–2023 | Multiple states (e.g. NY, CA, MA) sue major oil companies for climate damages |
| 2020 | Trump revokes California’s Clean Air Act waiver, sparking a state-federal legal standoff |
| 2023 | States like Vermont and New York pass laws to fine fossil fuel producers for historic emissions |
| April 8, 2025 | Trump signs the “Protecting American Energy from State Overreach” executive order |
| May–June 2025 | DOJ expected to begin legal efforts to challenge or halt state climate laws |
| TBD | States may initiate legal challenges to defend their climate laws and regulatory authority |
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