Vermont’s first-in-nation climate law faces legal challenge

By Lesley Clark | 03/31/2026 06:21 AM EDT

The Trump administration takes aim at a 2024 lawsuit that seeks to force fossil fuel companies to pay the costs of addressing climate change

The Vermont Statehouse is seen in Montpelier, Vermont.

The Vermont Statehouse is seen Jan. 8 in Montpelier, Vermont. Amanda Swinhart/AP

Vermont and the federal government faced off Monday over the state’s first-in-the nation law aimed at forcing polluters to pay for the effects of climate change with the Trump administration warning it would spur “the type of chaos that the Constitution is designed to prevent.”

The hearing before Judge Mary Kay Lanthier of the U.S. District Court for the District of Vermont comes as the administration has unleashed a broad assault on state-based climate efforts, including suing to invalidate the Vermont law establishing a “climate superfund” to recoup money from the oil and gas industry.

The Biden appointee did not tip her hand, pressing attorneys for the state and the federal government over whether the state is within its rights or stepping on federal authority. The administration is challenging a similar law in New York, and a ruling against Vermont would likely jeopardize that law and chill efforts in other states to adopt climate superfunds.

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Vermont argued the law — “a modest action” — was passed by state lawmakers in 2024 to help raise money to deal with climate change.

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