Legal battle erupts over canceled $7 billion low-income solar program


Summary

States' lawsuit

23 states are suing the Trump administration over the termination of a $7 billion solar power program.

Solar funding

The Biden-era Solar for All program intended to make solar power accessible to low-income communities.

Opposing views

The Trump administration views solar as expensive and unreliable while supporters say it can lower utility bills.


Full story

Twenty-three states and Washington, D.C., filed a lawsuit Thursday challenging the Trump administration’s decision to terminate a $7 billion Solar for All program. The solar program is a Biden administration initiative intended to help low-income families access renewable energy, something President Donald Trump has categorized as expensive and unreliable.

Administered by the Environmental Protection Agency (EPA), the Solar for All program was established by the passage of the Inflation Reduction Act in 2022. Administrator Lee Zeldin announced the program’s cancellation in August, citing the One Big Beautiful Bill Act that Trump signed into law in July, which he said eliminated the program’s funding source.

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The cancellation puts federal grants to 60 state, local and tribal governments in question, NBC News reported. The program was designed to provide solar panels and battery storage to approximately 900,000 low-income households across the country. Recipients had already begun planning projects based on expected funding.

What’s at stake for states?

California Attorney General Rob Bonta announced two separate lawsuits on behalf of states that received Solar for All grants. One complaint seeks monetary damages and was filed in the Court of Federal Claims. A second suit asking for reinstatement of the program is expected in federal court in Washington state.

Bonta called the EPA’s decision an “illegal termination,” adding that the Trump administration “can try all they want to bend the law, but we will hold them accountable. Every time.”

California stands to lose about $250 million in approved funding. Arizona would forfeit $156 million that was slated to benefit 11,000 low-income households, Arizona Attorney General Kris Mayes said in Reuters. Mayes said those families could see energy bills jump by 20% without the assistance.

Why did the administration cancel the program?

The Trump administration has consistently opposed federal subsidies for renewable energy projects. Zeldin called Solar for All a “boondoggle” when announcing its termination.

Trump has characterized solar and wind power as expensive, unreliable and unworthy of government backing, as opposed to gas, coal and nuclear, which have received strong support. His administration has rolled back multiple clean energy initiatives that were established under previous leadership.

The One Big Beautiful Bill Act provided the legal mechanism to eliminate Solar for All’s funding stream. That law was part of broader efforts to reduce government spending and refocus energy policy away from renewable sources.

What are the other lawsuits over Solar for All?

The states’ Thursday filing joins earlier legal actions from other affected parties.

On Oct. 6, a coalition filed suit in federal court in Rhode Island, The New York Times reported. The lead plaintiff was the Rhode Island AFL-CIO, representing labor unions that had trained workers to install solar panels. The unions were counting on work from a $49.3 million grant to the Rhode Island Office of Energy Resources.

Harris County, Texas, filed a lawsuit Oct. 13, Houston Public Media reported. The county stood to lose more than $250 million. County Attorney Christian Menefee said at a press conference that the EPA violated federal law, according to Houston Public Media.

The EPA declined to comment on pending litigation, according to Reuters.

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Why this story matters

Multiple states have filed lawsuits challenging the Trump administration's termination of a $7 billion solar energy program for low-income households, raising legal and policy questions regarding federal authority, clean energy access, and administrative decision-making.

Legal challenge over federal funding

States are disputing the termination of congressionally authorized solar grants, contending the action exceeds lawful administrative authority and breaches existing contracts, with potential impacts on state energy initiatives and the scope of federal agency power.

Access to clean energy for low-income communities

The canceled Solar for All program was designed to help low-income households install solar power, and its loss could affect energy costs, job opportunities, and clean energy access for vulnerable populations, according to participating attorneys general and program advocates.

Federal energy policy direction

The decision reflects a broader shift in national energy policy, with the Trump administration prioritizing fossil fuels and reducing support for renewable energy, which may have long-term implications for climate change mitigation and state-federal relations.

SAN provides
Unbiased. Straight Facts.

Don’t just take our word for it.


Certified balanced reporting

According to media bias experts at AllSides

AllSides Certified Balanced May 2025

Transparent and credible

Awarded a perfect reliability rating from NewsGuard

100/100

Welcome back to trustworthy journalism.

Find out more

Bias comparison

  • Media outlets on the left frame the $7 billion solar program's cancellation as a detrimental "Trump administration" action, using terms like "canceled" and "scrapped," and asserting "clean energy will be out of reach" due to a "rapid string of moves.
  • Media outlets in the center maintain a neutral tone, focusing on the legal claim of "unlawfully cancelling" the $7 billion program.
  • Media outlets on the right acknowledge the "canceled" program but pivot to a legislative rationale, citing the "One Big Beautiful Act" which "eliminated the Greenhouse Gas Reduction Fund," de-emphasizing direct administrative blame.

Media landscape

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62 total sources

Key points from the Left

  • More than 20 states are suing the Environmental Protection Agency after it canceled a $7 billion program aimed at providing solar power to low-income households.
  • The program, called Solar For All, was established under the Inflation Reduction Act to support nearly a million U.S. households.
  • Washington Attorney General Nick Brown stated that the EPA ignored Congress's approval and jeopardized $156 million earmarked for solar projects in Washington state.
  • The lawsuit claims the EPA's decision violated the Administrative Procedures Act and overstepped constitutional authority.

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Key points from the Center

No summary available because of a lack of coverage.

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Key points from the Right

  • More than 20 states are suing the Trump administration over the cancellation of $7 billion in solar program funding aimed at low-income communities.
  • The lawsuit claims that the Environmental Protection Agency breached grant agreements by ending the Solar for All program, which aimed to provide solar energy to nearly one million homes.
  • Washington Attorney General Nick Brown criticized the administration for hindering programs that aid low-income households.
  • The termination of funding has raised concerns about the impact on marginalized groups and their access to affordable clean energy.

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