Federal judge blocks New York's $75 billion climate liability law

September 20, 2026 at 08:00 PM2 min

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A federal judge ruled that New York's Climate Change Superfund Act conflicts with federal law and cannot take effect. The 2024 law would have required large fossil fuel polluters to pay up to $75 billion over 25 years for climate damages. The ruling came despite the state's aim to shift costs from taxpayers to oil and gas companies.

Key Facts

New York Governor Kathy Hochul signed the Climate Change Superfund Act in December 2024, requiring large fossil fuel polluters to pay up to $75 billion in damages.
The law mandated that firms responsible for most carbon emissions between 2000 and 2024 pay about $3 billion a year for 25 years.
Chief Judge Brenda Sannes of the US District Court for the Northern District of New York ruled the law conflicts with federal law in a 63-page decision.
Sannes cited the Second Circuit's 2021 decision in City of New York v. Chevron as precedent.
Cassidy DiPaola, communications director for Make Polluters Pay, called for Attorney General Tish James to appeal immediately.

The Climate Superfund Act

New York Governor Kathy Hochul signed the Climate Change Superfund Act in December 2024. The law required companies that contributed heavily to fossil fuel pollution to pay for damage caused by extreme weather events. It targeted firms responsible for most carbon emissions between 2000 and 2024, requiring payments of about $3 billion annually for 25 years. The legislation was modeled on the original 1980 Superfund law, which makes companies pay for toxic waste cleanup. Hochul said the law aimed to reduce the burden on taxpayers, noting that oil and gas companies produced over 1 billion tons of greenhouse gas emissions globally over the 24-year period.

The Court Ruling

Last month, Chief Judge Brenda Sannes of the US District Court for the Northern District of New York ruled that the state could not enforce the climate superfund law. In a 63-page decision, Sannes called the law 'unusual and sweeping' and said it conflicted with federal law. She cited the Second Circuit's 2021 decision in City of New York v. Chevron, where New York sued oil companies seeking climate-change damages. Cassidy DiPaola, communications director for Make Polluters Pay, said the decision rests on contested precedent from a fundamentally different case. DiPaola stressed that Attorney General Tish James must appeal immediately.