U.S. District Judge Brenda Sannes ruled on 2026-08-31 that New York's 2024 climate law, which would have required fossil-fuel producers to pay $75 billion for climate damages, is unconstitutional because it conflicts with the federal Clean Air Act and foreign affairs doctrine. ^[1] Chief U.S. District Judge Brenda Sannes ruled on Monday that New York cannot enforce a 2024 state law that sought to impose an estimated $75 billion in charges on carbon-emitting companies for allegedly causing climate damage between 2000 and 2018. ^[2] New York's climate law, signed by Democratic Governor Kathy Hochul in 2024, required companies responsible for substantial greenhouse gas emissions to collectively pay $3 billion per year for 25 years into a fund for infrastructure projects aimed at repairing or avoiding future climate damage. ^[3] The law was challenged in court by a coalition including fossil fuel interests, the U.S. Chamber of Commerce, 22 Republican state attorneys general, and the U.S. Environmental Protection Agency. ^[4] The U.S. Department of Justice said in a statement that it is 'delivering on President Trump's order to protect American energy from state overreach,' and principal deputy assistant attorney general Adam Gustafson said New York's law would have expropriated $75 billion from energy companies worldwide in defiance of American foreign policy and federal law. ^[5] Chief U.S. District Judge Brenda Sannes sided with 22 Republican state attorneys general and industry groups including the U.S. Chamber of Commerce in finding the state measure preempted by federal law. ^[6] New York Gov. Kathy Hochul signed the Climate Change Superfund Act into law in December 2024, requiring about three dozen covered fossil-fuel companies to pay a combined $3 billion annually for 25 years, or $75 billion in total. ^[7] The judge said the Clean Air Act, which gave the federal Environmental Protection Agency authority to regulate carbon dioxide emissions, did not authorize states to adopt emissions compensation schemes. ^[8]