A coalition of more than 20 U.S. states has filed lawsuits against the Trump administration following the cancellation of the $7 billion Solar for All program, a federal initiative aimed at expanding access to solar energy in low-income communities.
Attorneys general from 20 states, along with representatives from three others, are suing the Environmental Protection Agency (EPA) and its administrator Lee Zeldin, accusing the agency of the “unlawful termination” of the program and the attempted reclamation of already-allocated funds in August.
Launched in 2022, the Solar for All program was designed to fund solar deployment projects in disadvantaged areas across the country. According to the Massachusetts Department of Energy Resources, the initiative could have reduced energy bills by around 20% for up to 29,000 residents. U.S. Senator Ed Markey said the program would have enabled “more than $8 billion in savings” nationwide.
The office of Oregon Attorney General Dan Rayfield stated that participating states had already advanced planning, development, and financing for solar projects based on the federal funding. The abrupt cancellation, Rayfield said, has left these projects without a viable path forward.
In California, Attorney General Rob Bonta said the EPA owes the state nearly $250 million earmarked for community solar and energy storage projects under the program.
The states have filed two separate lawsuits against the EPA. The first, submitted to the U.S. Court of Federal Claims, alleges the agency breached contracts with the states and seeks financial compensation. The second, filed in Washington, D.C., argues that the EPA’s actions violated the Administrative Procedure Act and the U.S. Constitution’s Separation of Powers Doctrine.
According to the lawsuit, Zeldin “falsely claimed” that the EPA lacked statutory authority or dedicated funding for Solar for All, even though Congress had not ordered the recall of funds already issued.
“The cancellation of Solar for All funding is not just bad policy—it’s illegal,” said Alice Reynolds, President of the California Public Utilities Commission. “These grants were lawfully appropriated by Congress to lower energy costs and support the clean energy transition. Revoking them undermines that mission.”
Oregon’s Attorney General Rayfield echoed the sentiment, saying: “Working families are already struggling with rising energy costs, and blocking Oregon’s clean energy programs only makes that worse. This funding wasn’t just about protecting the environment—it was about lowering bills, creating jobs, and helping communities transition to affordable clean power.”
Earlier this year, in February, Zeldin also attempted to recall $20 billion in EPA clean energy grants under the Greenhouse Gas Reduction Fund, drawing sharp criticism from environmental groups and state officials. At the time, he accused the EPA of “shovelling boatloads of cash to far-left activist groups.”
