Federal judge rules Trump administration unlawfully canceled $7 billion Solar for All program

  • Judge Mary McElroy vacated EPA’s termination of the Solar for All program.
  • $7 billion was approved for Solar for All through Biden’s 2022 climate law.
  • The OBBBA rescinded unobligated balances but not already awarded SFA grants.

A federal judge in Rhode Island vacated the Environmental Protection Agency’s termination of the $7 billion Solar for All program, ruling that the agency lacked authority to rescind grants that had already been awarded. US District Judge Mary McElroy said the One Big Beautiful Bill Act rescinded unobligated balances but did not give the EPA discretion to reclaim obligated funds or stop administering the grants. Established under President Joe Biden’s Inflation Reduction Act, Solar for All directs funding to states, municipalities, tribes and nonprofits for residential and community solar projects intended to benefit low- and moderate-income households. The EPA awarded grants in 2024 to 60 nonprofit groups, tribes and states, with the program designed to help more than 900,000 people install solar and potentially reach nearly 1 million households. The EPA said it is reviewing the decision and considering an appeal. Environmental advocates welcomed the ruling, while related claims for losses tied to grant terminations remain pending before the Court of Federal Claims.

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