Democratic governors urge Congress to reject Stop Climate Shakedowns Act

Democratic governors and attorneys general sent letters to Congress urging rejection of the Stop Climate Shakedowns Act of 2026. The letters argue that the bill would grant oil and gas companies immunity from lawsuits and shift costs to taxpayers. The governors' letter states that communities nationwide have faced costs from fires, floods, storms, and heat waves linked by scientists to fossil fuel use.

More than 20 attorneys general wrote that guidance is needed as climate litigation grows in courts.

Background on the legislation The bill was introduced in April by Sen.

Ted Cruz and Rep. Harriet Hageman. If enacted, it would end more than a dozen lawsuits filed by state and local governments against oil and gas companies. Republicans supporting the measure say it protects domestic energy production from suits that could raise energy prices and reduce jobs. Democratic officials counter that taxpayers should not cover pollution-related damages.

Court case The Supreme Court will hear arguments in its fall term on a lawsuit filed by Boulder, Colorado, against ExxonMobil and Suncor Energy. The case centers on whether federal law prevents localities from seeking damages in state courts. Boulder filed its suit in 2018, alleging the companies contributed to climate change and misled the public.

California filed a separate suit against several oil companies in 2023 that remains in litigation. Jason Isaac, American Energy Institute CEO, described the litigation as a coordinated effort to bankrupt energy producers. Michael Toth of the Civitas Institute said the suits attempt to impose a carbon tax through the courts.