California is suing the Trump administration after federal officials canceled $1.2 billion in funding for a large-scale clean hydrogen initiative that had been approved by Congress.

California Attorney General Rob Bonta announced Wednesday that the state filed the lawsuit in federal court in San Francisco. Colorado and Washington are co-leading the legal challenge.

The lawsuit names the Department of Energy and the Office of Management and Budget, accusing the administration of unlawfully terminating energy and infrastructure grants established under federal laws passed by Congress.

At issue is ARCHES, the Alliance for Renewable Clean Hydrogen Energy Systems, which had been awarded $1.2 billion to expand hydrogen fuel use in public transit, heavy-duty trucking, utilities and port operations across California. State officials say the project was intended to reduce emissions while developing a statewide hydrogen market.

According to the complaint, the Department of Energy moved to cancel billions of dollars in energy awards nationwide after President Donald Trump, on his first day back in office, signed executive orders declaring a “national energy emergency” and directing agencies to dismantle programs tied to prior climate legislation.

The lawsuit argues that the funding was authorized by Congress through the Infrastructure Investment and Jobs Act and the Inflation Reduction Act and that federal agencies lack the authority to unilaterally terminate those appropriations.

The complaint asks the court to declare the cancellations unlawful and to block federal agencies from moving forward with terminating the programs.

“Trump defied Congress, jeopardized 200,000 good-paying jobs, and put billions in health savings at risk for communities hit hardest by pollution,” California Governor Gavin Newsom said in a statement. “We won’t let political retaliation wreck our economy or surrender clean energy leadership to China.”