Legal battle erupts over canceled $7 billion low-income solar program
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.
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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Ella Rae Greene, Editor In Chief
