Judge Rules EPA Illegally Terminated $7 Billion Solar Program

A federal judge in Rhode Island ruled Friday that the Trump administration illegally terminated a $7 billion solar program designed to make solar power accessible to over 900,000 lower-income Americans. The program, known as "Solar for All," was part of the Greenhouse Gas Reduction Fund established by the 2022 climate law.

In August 2025, the Environmental Protection Agency (EPA) rescinded the Solar for All funds after the passage of a Republican-backed tax and spending law. EPA Administrator Lee Zeldin described the program as a "boondoggle." However, District Judge Mary McElroy stated in her ruling that Congress intended for the EPA to continue administering the already obligated grants. McElroy found that the EPA acted contrary to this intent and without statutory authority when it terminated the program, and she vacated the termination.

The EPA has indicated it is reviewing the decision and considering an appeal.

The lawsuit, filed in Rhode Island by the Rhode Island AFL-CIO labor organization, the Rhode Island Center for Justice, and Solar United Neighbors, emphasized the program's importance for local workforces and lower-income communities seeking funding for clean energy projects. Patrick Crowley, president of the Rhode Island AFL-CIO, called the decision a significant victory, predicting the program's revival would create thousands of union jobs nationwide.

"Clean, affordable power like solar shouldn't be a luxury," said Alex St. Pierre, vice president for environmental justice at the Conservation Law Foundation, one of the nonprofit legal advocacy groups representing the plaintiffs. "Communities have waited long enough. Nearly every family is looking for ways to cut their energy bill. These dollars should go where Congress intended: toward lower energy bills, less climate pollution, good jobs and cleaner air."

In May, solar energy generated more of the nation's electricity than coal for the first time. The Trump administration had previously targeted several clean energy programs and policies. The $7 billion Solar for All program was one component of the $27 billion "green bank," formally known as the Greenhouse Gas Reduction Fund.

An earlier lawsuit filed by the attorneys general of more than a dozen states over the canceled solar program funding was dismissed in June by a federal judge in Washington for lack of jurisdiction. The plaintiffs in that case have appealed the dismissal.

Another $20 billion from the Greenhouse Gas Reduction Fund, also canceled by the Trump administration, was allocated for eight community development banks and nonprofit organizations to fund tens of thousands of projects aimed at combating climate change effects. A divided federal appeals court ruled last month that the Trump administration had improperly terminated this portion of the fund, a decision that favored a coalition of nonprofits selected to manage the initiative.