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EPA

States Take EPA to Court Over Scrapped Solar Program

States say agency overstepped authority by canceling $7B in solar grants
Posted Oct 17, 2025 6:01 AM CDT
States Take EPA to Court Over Scrapped Solar Program
Brayan Santos, left, and Theodore Tanczuk, right, of solar installer YellowLite, put solar panels on the roof of a home in Lakewood, Ohio, April 16, 2025.   (AP Photo/Sue Ogrocki, File)

More than 20 states are suing the Environmental Protection Agency after it scrapped a $7 billion program designed to bring solar power to low-income households. The "Solar For All" initiative, launched during the Biden administration, was meant to fund rooftop and community solar projects for nearly a million additional US households. The EPA abruptly canceled the program in August, pulling about 90% of the grant money from state accounts, according to the lawsuit filed Thursday. The states argue that the EPA overstepped its authority by unilaterally ending a congressionally approved program and pulling back funds that had already been allocated, reports NBC News.

"Congress passed a solar energy program to help make electricity costs more affordable, but the administration is ignoring the law, and focused on the conspiracy theory that climate change is a hoax," said Washington state Attorney General Nick Brown, who noted his state stands to lose about $156 million. The legal action, filed in federal court in Washington state, claims the EPA violated both the Administrative Procedures Act and its own constitutional limits. All 23 states involved in the lawsuit have Democratic governors or attorneys general, with Washington, Arizona, and Minnesota leading the suit.

The lawsuit names the EPA and Administrator Lee Zeldin, who called the program a "boondoggle," as defendants, the AP reports. A related lawsuit filed Wednesday seeks damages from breach of contract. "Working families are already feeling the strain of rising energy costs—and blocking Oregon's clean energy programs only makes that worse," Oregon Attorney General Dan Rayfield said in a statement, per OBP. "This funding wasn't just about protecting the environment; it was about lowering bills, creating jobs, helping communities transition to cleaner, more affordable power."

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