Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. See our State Attorneys General page for more insights. Below are the updates from September 3-9, 2026:

Multistate

• A multistate coalition of 22 attorneys general, co-led by Illinois Attorney General Raoul and the attorneys general of California, Connecticut, Maryland, and Massachusetts, filed suit challenging a final rule issued by the U.S. Department of Health and Human Services prohibiting federal Medicaid and CHIP reimbursement for gender-affirming care for beneficiaries under ages 18 and 19, respectively, while continuing to cover the same treatments when provided to non-transgender youth. The coalition argues that since the creation of Medicaid and CHIP in the 1960s, Congress has reserved to states the authority to determine which services are covered under their programs, and that HHS and the Centers for Medicare & Medicaid Services lack statutory authority to categorically exclude medically necessary services from reimbursement based solely on the patient’s transgender status. The complaint alleges violations of the Administrative Procedure Act and the Spending Clause of the U.S. Constitution. The rule is set to take effect on October 13, 2026.

• A multistate coalition of 24 attorneys general, co-led by California Attorney General Bonta and the attorneys general of Massachusetts, Nevada, and Washington, announced that the U.S. District Court for the District of Massachusetts has granted a preliminary injunction blocking key provisions of U.S. Postal Service changes to mail voting procedures through the November elections. The USPS changes, mandated by executive order, would require state and local election officials to redesign and reprint ballot envelopes, enroll millions of voters in a new USPS system, and comply with requirements that would allow USPS to refuse delivery of noncompliant mail ballots. The preliminary injunction, granted following oral argument on September 3, extends the court’s earlier temporary restraining order while the case proceeds.

• A multistate coalition of 22 attorneys general, led by West Virginia Attorney General McCuskey, secured a ruling from the U.S. District Court for the Northern District of New York striking down New York’s Climate Change Superfund Act as unenforceable and preempted by federal law. The law sought to impose $75 billion in fines on energy producers for lawful energy production occurring between 2000 and 2024. The court held that the Act was inconsistent with the federal Clean Air Act, which provides the exclusive framework for regulating interstate air pollution, and was therefore beyond the limits of state law.

• A multistate coalition of 18 attorneys general, led by California Attorney General Bonta, submitted a comment letter opposing a proposed Federal Aviation Administration rule that would preempt state labor laws governing meal and rest breaks for pilots and flight attendants. The coalition argues that the proposed rule exceeds the FAA’s authority, conflicts with established judicial precedent, and would eliminate worker protections without meaningfully advancing aviation safety. The comment letter urges the FAA to withdraw the proposed rule and allow states to continue enforcing existing labor laws.

• A multistate coalition of 17 attorneys general, co-led by Illinois Attorney General Raoul and Massachusetts Attorney General Campbell, submitted a comment letter opposing a proposed Bureau of Alcohol, Tobacco, Firearms and Explosives rule that would allow defense contractors to automatically register and sell military-grade weapons manufactured under government contracts but not delivered to the federal government. Currently, contractors must either destroy such excess weapons or obtain a variance from the ATF subject to several layers of review; the proposed rule would eliminate that variance process and create an automatic registration pathway. The coalition argues the rule violates the Administrative Procedure Act and the National Firearms Act, and warns that it would incentivize overproduction of weapons, generate an estimated $600 million in additional annual profits for defense contractors from destructive devices alone, and impede states’ ability to trace crime guns and prosecute trafficking and violent crime.

California

• Attorney General Bonta secured a preliminary injunction requiring the EPA to withdraw or correct its reclassification of six Clean Air Act preemption waivers previously granted to California to enforce state-level vehicle and engine emission standards. The EPA, in June and July 2026, purported to reclassify the waivers as rules subject to congressional disapproval — a designation never applied to waivers in the more than 50 years since the Clean Air Act was enacted — and submitted them to Congress for potential disapproval. The district court rejected the EPA’s approach, finding it undermined honest compliance with the law, and ordered the agency to refrain from giving the reclassifications any effect while the litigation proceeds.

Colorado

• Attorney General Weiser announced a settlement with Avail Property Management Inc. and PK Management, LLC resolving allegations that the companies violated Colorado’s Rental Application Fairness Act and the Colorado Consumer Protection Act by denying prospective tenants housing based on criminal history information prohibited under state law, including arrests, deferred judgments, and convictions more than five years old. The companies managed nearly 4,000 rental units across more than a dozen properties in Colorado, including affordable housing communities serving seniors. Under the settlement, the companies must revise their tenant screening policies, independently review third-party background screening recommendations rather than automatically deferring to them, submit compliance documentation to the Attorney General’s Office for two years, and pay $300,000 in penalties. The settlement is subject to court approval.

District of Columbia

• District of Columbia Attorney General Schwalb filed suit against developer Buwa Binitie and his companies, Delta 2 Owner LLC and Faria Management, for extreme neglect at Delta Pearl, a 166-unit affordable apartment building in Ward 5. The Attorney General’s investigation and inspections by the Department of Buildings documented pervasive housing code violations over the past year, including a building-wide air conditioning failure since July 1, 2026, both elevators out of service since July 2026, unsanitary stairwells containing human waste and debris, a broken security system allowing non-tenants to occupy common areas and vacant units, rodent and insect infestations caused by chronic trash accumulation, exposed electrical wiring, and inoperable fire safety equipment. The lawsuit seeks a temporary restraining order to address the most urgent conditions, a preliminary injunction requiring comprehensive repairs, restitution for affected tenants, and civil penalties.

Illinois

• Attorney General Raoul filed suit against ABC Plumbing, Heating, Cooling & Electric, Inc., an Arlington Heights home repair company, alleging a pattern of deceptive practices targeting senior citizens in violation of the Illinois Consumer Fraud Act, the Deceptive Trade Practices Act, and the Illinois Home Repair and Remodeling Act. The lawsuit alleges that ABC technicians conducted unauthorized inspections of consumers’ homes, presented fabricated or exaggerated emergencies to pressure consumers into signing contracts for unnecessary work, and used digital tablets to obtain signatures on contracts that consumers were not permitted to read and that contained waivers of their statutory three-day right to cancel. The complaint further alleges that the work was frequently overpriced, incomplete, or performed by unlicensed technicians. The lawsuit seeks a permanent injunction, rescission of contracts entered into as a result of the unlawful practices, and civil monetary relief.

Kentucky

• Attorney General Coleman filed a civil lawsuit in Logan Circuit Court against Mayday Health, a New York-based organization, alleging violations of Kentucky’s Consumer Protection Act through the advertisement of mail-order abortion pills. Kentucky law has prohibited the mailing or delivery of abortion-inducing drugs since 2022. The lawsuit alleges that Mayday Health advertised the pills at gas stations across western Kentucky and via a banner towed by an airplane over the Kentucky State Fair. The lawsuit seeks a permanent injunction against the advertisements and civil penalties.

Michigan

• Attorney General Nessel secured a preliminary injunction against KalshiEx, LLC, requiring the prediction market company to maintain geofencing blocking Michigan residents from accessing its online sports betting contracts, with violations subject to a $500,000 per day fine. Attorney General Nessel filed suit against Kalshi in March 2026, alleging that the company’s platform, which allows users to place wagers on sports-related outcomes under the guise of trading event contracts, constitutes unlicensed sports betting in violation of Michigan’s Lawful Sports Betting Act. The preliminary injunction follows a temporary restraining order secured in June 2026 and comes after the court rejected Kalshi’s attempt to remove the case to federal court.

Nebraska

• Attorney General Hilgers announced a settlement with Sunburn Construction, LLC, doing business as Everlight Solar, resolving allegations that the Wisconsin-based solar panel company engaged in deceptive and aggressive door-to-door sales practices targeting Nebraska consumers. Attorney General Hilgers alleged that Everlight’s sales representatives made false claims that solar panel installation would reduce or eliminate consumers’ electric bills, made unsupported representations that installation would increase property values, and in some instances ignored no-solicitation signs or refused to leave when asked. Under the settlement, Everlight must reform its sales practices, submit compliance reports to the Attorney General’s Office for three years, and pay $200,000 into the State Settlement Cash Fund for investigative costs and attorney fees.

Pennsylvania

• Attorney General Sunday filed a contempt petition against Angelina’s Towing and Recovery LLC and three affiliated companies and their principal, alleging continued violation of a 2022 court order entered following a 2020 lawsuit over predatory towing practices in Philadelphia. Attorney General Sunday alleges that the companies have continued to tow vehicles from improperly marked areas, require consumers to pay fees in cash or via CashApp, impose surcharges on credit card payments, and charge excessive and unlawful towing and storage fees in violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law and Philadelphia’s Towing Law. The contempt petition seeks monetary relief of more than $220,000.