diff --git a/src/main/java/net/fabricmc/loom/configuration/providers/forge/ForgeRunTemplate.java b/src/main/java/net/fabricmc/loom/configuration/providers/forge/ForgeRunTemplate.java
index 7b8c46fa..ce01ce1c 100644
--- a/src/main/java/net/fabricmc/loom/configuration/providers/forge/ForgeRunTemplate.java
+++ b/src/main/java/net/fabricmc/loom/configuration/providers/forge/ForgeRunTemplate.java
@@ -116,13 +116,6 @@ public record ForgeRunTemplate(
 			settings.getEnvironmentVariables().putIfAbsent(key, resolved);
 		});
 
-		// TODO: Also remove this hack once DLI supports clientData as the env
-		if (this.name.equals("dataClient") || this.name.equals("dataServer")) {
-			for (ConfigValue arg : args) {
-				settings.programArg(arg.resolve(configValueResolver));
-			}
-		}
-
 		// Add MOD_CLASSES, this is something that ForgeGradle does
 		settings.getEnvironmentVariables().computeIfAbsent("MOD_CLASSES", $ -> ConfigValue.of("{source_roots}").resolve(configValueResolver));
 	}
diff --git a/src/main/java/net/fabricmc/loom/task/launch/GenerateDLIConfigTask.java b/src/main/java/net/fabricmc/loom/task/launch/GenerateDLIConfigTask.java
index 22be5c7c..d8cabad3 100644
--- a/src/main/java/net/fabricmc/loom/task/launch/GenerateDLIConfigTask.java
+++ b/src/main/java/net/fabricmc/loom/task/launch/GenerateDLIConfigTask.java
@@ -32,6 +32,7 @@ import java.util.ArrayList;
 import java.util.Arrays;
 import java.util.HashMap;
 import java.util.List;
+import java.util.Locale;
 import java.util.Map;
 import java.util.Objects;
 import java.util.Set;
@@ -272,12 +273,16 @@ public abstract class GenerateDLIConfigTask extends AbstractLoomTask {
 			}
 
 			for (ForgeRunTemplate.Resolved template : getRunTemplates().get()) {
+				// Note: lowercase to match RunConfig which lowercases all user input for
+				// RunConfigSettings.environment
+				var env = template.name().toLowerCase(Locale.ROOT);
+
 				for (String argument : template.args()) {
-					launchConfig.argument(template.name(), argument);
+					launchConfig.argument(env, argument);
 				}
 
 				for (Map.Entry<String, String> property : template.props().entrySet()) {
-					launchConfig.property(template.name(), property.getKey(), property.getValue());
+					launchConfig.property(env, property.getKey(), property.getValue());
 				}
 			}
 		}