23 states sue EPA over termination of ‘solar for all’ program

Attorneys general from 23 states and the District of Columbia have filed a lawsuit against the U.S. Environmental Protection Agency (EPA) over the abrupt termination of the $7 billion “Solar for All” program. The program, initially launched in 2022 under the Biden administration’s Inflation Reduction Act, aimed to expand solar energy access to over 900,000 low-income households across the nation.

The lawsuit, filed in the U.S. District Court for the Western District of Washington, alleges that the EPA’s decision to cancel the program in August 2025 violated the Administrative Procedure Act and the constitutional principle of separation of powers. The plaintiffs contend that the program’s funding was legally obligated prior to the passage of the “One Big Beautiful Bill Act” under the Trump administration, which the EPA cited as the basis for the termination.

“The EPA’s actions unlawfully rescind funds that Congress had appropriated for clean energy initiatives aimed at assisting low-income communities,” said Minnesota Attorney General Keith Ellison, who is leading the lawsuit. “This abrupt cancellation undermines years of planning and investment in renewable energy infrastructure.”

The terminated grants had been allocated to various projects, including rooftop solar installations and community solar gardens, which were expected to reduce energy costs and enhance grid resilience in underserved areas. For instance, Washington state was set to receive approximately $156 million for qualifying solar projects, while California was poised to benefit from a $250 million allocation. Additionally, the Hopi tribe in Arizona had been awarded $25 million to bring solar power to its remote communities.

In a parallel legal action, a coalition of 24 grant recipients has filed a breach-of-contract complaint in the U.S. Court of Federal Claims, seeking monetary damages for the EPA’s termination of the program. These lawsuits reflect a broader legal resistance to the rollback of clean energy initiatives by the current administration.

The outcome of these legal challenges could have significant implications for the future of federal clean energy programs and the ability of states and local governments to implement renewable energy projects aimed at reducing energy poverty and combating climate change.

As the litigation progresses, stakeholders from various sectors are closely monitoring developments, with many advocating for the reinstatement of the Solar for All program to ensure continued progress toward a sustainable and equitable energy future.