Case: State of Washington v. United States Department of Commerce

2:25-cv-01507 | U.S. District Court for the Western District of Washington

Filed Date: Aug. 8, 2025

Case Ongoing

Clearinghouse coding complete

Case Summary

This case challenges the termination of over $9 million in federal funding to Washington State by the U.S. Department of Commerce (DOC) and the National Oceanic and Atmospheric Administration (NOAA). The first grant was for "Tribal Stewards: Cultivating Tribal Leadership & Equity in Natural Resource Stewardship & Climate Resilience" and was awarded to the Washington State Board of Community and Technical Colleges to train a new generation of tribal leaders and co-stewards in natural resource ma…

This case challenges the termination of over $9 million in federal funding to Washington State by the U.S. Department of Commerce (DOC) and the National Oceanic and Atmospheric Administration (NOAA). The first grant was for "Tribal Stewards: Cultivating Tribal Leadership & Equity in Natural Resource Stewardship & Climate Resilience" and was awarded to the Washington State Board of Community and Technical Colleges to train a new generation of tribal leaders and co-stewards in natural resource management and climate resilience." The second grant, titled "Advancing an Equitable Framework for Coastal Resilience in Washington State," was awarded to the Washington State Department of Ecology and aimed to address coastal hazards and reduce environmental and health disparities.

The funding was terminated on May 5, 2025, allegedly in alignment with a series of Trump administration executive orders, including Executive Order 14151, which targeted diversity, equity, and inclusion (DEIA) initiatives and “ideologically motivated” climate change programs; Executive Order 14260, which sought to challenge state and local laws that hindered domestic energy development; and Executive Order 14222, which directed agencies to review and potentially terminate existing grants and contracts as part of broader efforts to reshape federal spending.

On August 8, 2025, the State of Washington filed this lawsuit in the U.S. District Court for the Western District of Washington against the DOC and its Secretary, and NOAA and its Acting Administrator. The State brought claims under federal regulations, the Administrative Procedure Act, the Spending Clause, the Separation of Powers, the Appointments Clause, and for ultra vires actions. Represented by the Attorney General and the Attorney General's Environmental Protection Division, the plaintiffs sought declaratory relief and a permanent injunction to prevent the defendants from implementing, maintaining, or reinstating the terminations. The case has not yet been assigned to a judge.

The plaintiffs claimed that the defendants’ reasons for terminating the grants were “spurious and pretextual,” relying on a flawed interpretation of 2 C.F.R. § 200.340 to end funding based on new administration priorities rather than the priorities in place at the time of the award. They argued that the terminations targeted projects inconsistent with the administration’s political agenda rather than those that had failed to meet their original goals, and that the lost funding undermined their efforts to help communities disproportionately affected by climate change enhance their resilience. 

The plaintiffs further argued that the defendants’ actions were arbitrary and capricious and disregarded the requirement that termination conditions be clearly and unambiguously specified in the grant terms. The plaintiffs contended that the defendants failed to consider the serious reliance interests of the State of Washington, colleges, and tribal governments, who had invested time and resources into the projects based on the expectation that the awards would be fully funded. The plaintiffs also claimed that the terminations violated the Spending Clause because they were not given fair notice of the new conditions under which the funding was terminated. They argued that the terminations violated the Separation of Powers by allowing the executive branch to contravene congressional intent and end congressionally approved and funded programs based on new executive preferences. Finally, they claimed Appointments Clause violations, arguing that a non-NOAA employee could not lawfully terminate the awards on NOAA’s behalf.

This case is ongoing. 

Summary Authors

Victoria Tan (8/13/2025)

People

For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/71065919/parties/state-of-washington-v-united-states-department-of-commerce/


Judge(s)

Pechman, Marsha J. (Washington)

Attorney for Plaintiff

Brown, Leah (Washington)

Range, Ellen E (Washington)

Soden, Caitlin (Washington)

Expert/Monitor/Master/Other

Worthington, John (Washington)

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Documents in the Clearinghouse

Document
1

2:25-cv-01507

Complaint

Aug. 8, 2025

Aug. 8, 2025

Complaint

Resources

Docket

See docket on RECAP: https://www.courtlistener.com/docket/71065919/state-of-washington-v-united-states-department-of-commerce/

Last updated Aug. 21, 2025, 11:40 a.m.

ECF Number Description Date Link Date / Link
1

COMPLAINT against All Defendants (Receipt # AWAWDC-9114126) Attorney Caitlin Soden added to party State of Washington(pty:pla) filed by State of Washington. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6 Exhibit F, # 7 Exhibit G, # 8 Exhibit H, # 9 Exhibit I, # 10 Exhibit J, # 11 Exhibit K, # 12 Exhibit L, # 13 Exhibit M, # 14 Civil Cover Sheet, # 15 Summons U.S. Department of Commerce, # 16 Summons Howard Lutnick, # 17 Summons National Oceanic and Atmospheric Administration, # 18 Summons Laura Grimm)(Soden, Caitlin) (Entered: 08/08/2025)

1 Exhibit A

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2 Exhibit B

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3 Exhibit C

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4 Exhibit D

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5 Exhibit E

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6 Exhibit F

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7 Exhibit G

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8 Exhibit H

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9 Exhibit I

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10 Exhibit J

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11 Exhibit K

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12 Exhibit L

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13 Exhibit M

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14 Civil Cover Sheet

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15 Summons U.S. Department of Commerce

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16 Summons Howard Lutnick

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17 Summons National Oceanic and Atmospheric Administration

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18 Summons Laura Grimm

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Aug. 8, 2025

Aug. 8, 2025

RECAP
2

Summons(es) Electronically Issued as to All Defendants (HH) (Entered: 08/11/2025)

Aug. 11, 2025

Aug. 11, 2025

PACER
3

Notice of Filing Deficiency re 1 Complaint,,. ***Action Required*** Improper Signature - Secondary Attorney(s).See attached letter for more information and instructions. (HH) (Entered: 08/11/2025)

Aug. 11, 2025

Aug. 11, 2025

PACER
4

NOTICE of Appearance by attorney Ellen E Range on behalf of Plaintiff State of Washington. (Range, Ellen) (Entered: 08/11/2025)

Aug. 11, 2025

Aug. 11, 2025

PACER
5

NOTICE of Appearance by attorney Leah Brown on behalf of Plaintiff State of Washington. (Brown, Leah) (Entered: 08/11/2025)

Aug. 11, 2025

Aug. 11, 2025

PACER

Judge Marsha J. Pechman added. (HH)

Aug. 11, 2025

Aug. 11, 2025

PACER
11

MOTION to Intervene, filed by Interested Party John Worthington. (Attachments: # 1 Proposed Motion) Noting Date 9/8/2025. (APH) (Entered: 08/20/2025)

Aug. 18, 2025

Aug. 18, 2025

PACER
10

DECLARATION of Maya Esquivido filed by Plaintiff State of Washington re 6 MOTION for Preliminary Injunction (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6 Exhibit F, # 7 Exhibit G, # 8 Exhibit H)(Soden, Caitlin) (Entered: 08/19/2025)

Aug. 19, 2025

Aug. 19, 2025

PACER
6

MOTION for Preliminary Injunction, filed by Plaintiff State of Washington. Oral Argument Requested. (Attachments: # 1 Proposed Order) Noting Date 9/16/2025, (Soden, Caitlin) (Entered: 08/19/2025)

1 Proposed Order

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Aug. 19, 2025

Aug. 19, 2025

PACER
7

DECLARATION of Michelle Gostic filed by Plaintiff State of Washington re 6 MOTION for Preliminary Injunction (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6 Exhibit F)(Soden, Caitlin) (Entered: 08/19/2025)

Aug. 19, 2025

Aug. 19, 2025

PACER
8

DECLARATION of Jennifer Hennessey filed by Plaintiff State of Washington re 6 MOTION for Preliminary Injunction (Attachments: # 1 Exhibit 1, # 2 Exhibit 2)(Soden, Caitlin) (Entered: 08/19/2025)

Aug. 19, 2025

Aug. 19, 2025

PACER
9

DECLARATION of Joenne McGerr filed by Plaintiff State of Washington re 6 MOTION for Preliminary Injunction (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6 Exhibit F)(Soden, Caitlin) (Entered: 08/19/2025)

Aug. 19, 2025

Aug. 19, 2025

PACER
12

CERTIFICATE OF SERVICE by Plaintiff State of Washington (Soden, Caitlin) (Entered: 08/20/2025)

Aug. 20, 2025

Aug. 20, 2025

PACER
13

CERTIFICATE OF SERVICE by Plaintiff State of Washington (Soden, Caitlin) (Entered: 08/20/2025)

Aug. 20, 2025

Aug. 20, 2025

PACER

Case Details

State / Territory: Washington

Case Type(s):

Presidential/Gubernatorial Authority

Special Collection(s):

Trump Administration 2.0: Challenges to the Government

Trump Administration 2.0: Challenges to the Government (Grant/Contract rescissions, Defunding or Other Threats against Private Entities )

Key Dates

Filing Date: Aug. 8, 2025

Case Ongoing: Yes

Plaintiffs

Plaintiff Description:

State of Washington

Plaintiff Type(s):

State Plaintiff

Public Interest Lawyer: Yes

Filed Pro Se: No

Class Action Sought: No

Class Action Outcome: Not sought

Defendants

U.S. Department of Commerce (- United States (national) -), Federal

National Oceanic and Atmospheric Administration (- United States (national) -), Federal

Defendant Type(s):

Jurisdiction-wide

Facility Type(s):

Government-run

Case Details

Causes of Action:

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

Constitutional Clause(s):

Spending/Appropriations Clauses

Separation of Powers

Appointments Clause

Available Documents:

Trial Court Docket

Complaint (any)

Outcome

Prevailing Party: None Yet / None

Nature of Relief:

None yet

Source of Relief:

None yet

Issues

General/Misc.:

Funding