On Friday, District Judge Mary McElroy found that the Trump administration's move to shut down a $7 billion solar grant program ran afoul of federal law. She concluded the EPA broke the Administrative Procedure Act and exceeded its legal authority. In her words, "Congress' clear intent was that EPA continue to administer the already obligated" grants, and "Defendants acted contrary to this intent, and with no other statutory authority, when they terminated" the program.
McElroy also vacated the decision that ended Solar for All. That could clear the way for the EPA to restart the initiative and release money that had been lined up, though it is unclear if or when her order will take effect. The EPA stated it is assessing the ruling and considering whether to appeal.
The EPA halted Solar for All last August after it had already assigned funding nationwide aimed at enabling low-income communities to put money into solar and other home improvements. The agency pointed to the then-recent enactment by Congress of President Donald Trump's wide-ranging tax and spending law, arguing it stripped the EPA's authority to keep running the program.
"EPA is taking action to end this program for good," wrote EPA Administrator Lee Zeldin on X last August. "EPA no longer has the statutory authority to administer the program or the appropriated funds to keep this boondoogle alive."
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The termination drew immediate lawsuits from multiple stakeholders in courts around the country. Lawyers for Good Government helped represent some plaintiffs. "For more than a year, families and communities have seen higher energy bills while billions of dollars intended to lower electricity costs sat out of reach," said Jillian Blanchard of the group. "Today's ruling confirms what we have argued from the beginning: EPA cannot erase a $7 billion program that Congress created and funded."
Solar for All is funded by the Inflation Reduction Act, often labeled former President Joe Biden's hallmark climate legislation. When the EPA awarded grants in 2024, it projected reaching 900,000 low-income households nationwide and producing over $350 million in yearly savings on residential electric bills.
This is the latest in a run of court setbacks for the EPA in recent months. If the order holds and the program restarts, communities could finally see those committed dollars flow, with lower utility bills following for eligible households. Until then, expect more legal back-and-forth before money moves.
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