Over 20 US states have sued the EPA for terminating the $7 billion Solar for All Program supporting low-income solar access
Plaintiffs claim the EPA unlawfully ended a program whose funds were already obligated by the agency
The lawsuit seeks reinstatement of funding and continuation of the Solar for All initiative across awarded states and territories
A coalition of over 20 US states is suing the US Environmental Protection Agency (EPA) over the termination of the $7 billion Solar for All (SFA) Program. The program was designed to support access to solar energy for low-income households and disadvantaged communities.
A Biden-era program, SFA was expected to support over 4 GW of distributed solar deployment in 5 years. A total of 60 winners were selected for grants and low-cost financing to support solar installations across 50 states, the District of Columbia, Puerto Rico, and territories (see Joe Biden Announces $7 Billion In Grants For Residential Solar).
On August 7, 2025, the EPA terminated the program ‘to remain aligned with Congressional intent’. The Working Families Tax Cut repealed the EPA’s authority to administer the program and rescinded all remaining funds.
EPA Administrator Lee Zeldin had stated back then, “With clear language and intent from Congress in the One Big Beautiful Bill, EPA is taking action to end this program for good. We are committed to the rule of law and being a good steward of taxpayer dollars.”
Now, in lawsuits filed by the multistate coalition with the United States District Court Western District of Washington and the Court of Federal Claims, the petitioners have called out the EPA for ‘unilaterally and illegally’ terminating the multi-billion-dollar program that would have provided solar energy to more than 900,000 households.
These lawsuits follow a similar one that was recently filed by a coalition of environmental groups in the federal court in Rhode Island. The plaintiffs include the Rhode Island AFL-CIO, Rhode Island Center for Justice, Solar United Neighbors, Sunpath Consulting, Black Sunlight Sustainability, among others.
The complainants argue that the funds had already been obligated by the EPA, meaning legally committed to the program. They also started building out their state SFA programs before the EPA terminated the SFA. Further, the US Congress did not authorize or direct the terminations of the program.
According to the lawsuits filed, Congress repealed large parts of the Greenhouse Gas Reduction Fund, but did not repeal the SFA program retroactively. It rescinded only unobligated balances that preserved all $7 billion of the obligated funding already awarded by the EPA for the SFA.
“Plaintiffs have been and will continue to be harmed by Defendants’ executive overreach. By arbitrarily terminating a program in which Plaintiffs participated and which was expected to bring substantial benefits to Plaintiffs and their residents, Defendants have illegally eliminated Plaintiffs’ ability to participate in and benefit from the SFA Program,” reads the lawsuit.
California Attorney General Rob Bonta, who has joined the multistate coalition alongside the California Public Utilities Commission (CPUC), said the SFA termination denies states of critical funds needed for low-income and disadvantaged communities in the country. California alone was allocated almost $250 million in SFA funds.
“At a time when energy bills are at a record high and only continuing to skyrocket, the Trump Administration is needlessly hampering an industry that can produce safe, reliable, and inexpensive energy,” said Bonta. “Solar for All was built to deliver relief for all Americans — by lowering energy bills for working families, reducing our carbon footprint, and creating high-quality union jobs that would bolster our economy. We will not let this illegal termination of the Solar for All Program stand.”
They now seek the court to declare the terminations as unlawful, SFA funding to be restored or redistributed to SFA recipients, and the program to be reinstated.
The multistate coalition here represents the US states of Arizona, Washington, Minnesota, District of Columbia, California, Colorado, Connecticut, Hawai’i, Illinois, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, and Wisconsin.