California Joins Multi-State Coalition to Sue Trump Administration Over Cancellation of Solar for All Program
California this week joined a multi-state coalition in suing the Trump administration over its cancellation of a $7-billion grant program designed to help low-income households install solar panels on their homes.
In a pair of lawsuits filed Wednesday and Thursday, Attorney General Rob Bonta, the California Public Utilities Commission (CPUC), and representatives from nearly two dozen other states and Washington, D.C., accused the U.S. Environmental Protection Agency (EPA) of unlawfully terminating the Solar for All Program. They argue that this move “denies states of critical funds they were depending on to increase access to solar energy in low-income and disadvantaged communities nationwide.”
The Solar for All Program was awarded to 60 recipients—including states, tribes, regions, and nonprofits—under the Biden administration. It would have delivered residential solar projects to more than 900,000 households nationwide. However, the EPA announced its termination of the program in August.
“At a time when energy bills are at a record high and only continuing to skyrocket, the Trump Administration is needlessly hampering an industry that can produce safe, reliable, and inexpensive energy,” Bonta said in a statement. “Solar for All was built to deliver relief for all Americans by lowering energy bills for working families, reducing our carbon footprint, and creating high-quality union jobs that would bolster our economy.”
Details of the Lawsuits
The first lawsuit, filed Wednesday in the Court of Federal Claims, alleges that the EPA’s abrupt cancellation breached its contractual obligations. The revoked funds had already been obligated to recipients by Congress. Each state involved in the lawsuit is seeking money damages.
The second suit, announced Thursday and filed in the U.S. District Court for the Western District of Washington, alleges that the administration violated federal laws in canceling the program, including the Administrative Procedure Act and the U.S. Constitution. This suit seeks a declaration that the termination was unlawful and aims to compel the EPA to reinstate the program.
EPA’s Response and Criticism
Representatives from the EPA declined to comment on pending litigation, citing longstanding agency practice.
In August, EPA Administrator Lee Zeldin posted on X (formerly Twitter) criticizing the Solar for All program as a “boondoggle,” stating that the agency no longer had statutory authority to administer the funds. He expressed concerns about the program’s funding structure, highlighting the “massive dilution of the money” through multiple layers of pass-through grants, each taking a cut estimated at least 15%.
Zeldin called the program “a grift,” underscoring his administration’s rationale for canceling the initiative.
Background on Solar for All and Its Impact
The Solar for All Program was part of the Biden administration’s Greenhouse Gas Reduction Fund, a $27-billion initiative aimed at combating climate change through clean energy investments.
Plaintiffs warn that allowing the program’s termination to stand would negatively impact individual households and stall nationwide progress on clean energy adoption.
California Energy Commission Chair David Hochschild stated, “The Trump Administration’s clawback of the Solar for All program is a direct assault on clean, affordable energy.”
Impact in California
In California alone, nearly $250 million in funding for community solar and energy storage projects was terminated. This includes $200 million allocated to the California Public Utilities Commission for community solar systems designed to provide participating households—primarily lower- and middle-income families—with 20% discounts on their monthly electricity bills. Many of these households are renters or do not have access to their own rooftops.
Additionally, $9 million in funding designated for workforce training in California was also cut.
CPUC President Alice Reynolds condemned the cancellation, saying, “The cancellation of Solar for All funding is not just bad policy, it is illegal. These grants were lawfully appropriated by Congress and intended to help lower energy costs and transition to a clean energy supply. Revoking the funding is a destabilizing decision, but we will continue to progress toward clean energy for all Californians, driving economic growth and creating green jobs for a sustainable future.”
Ongoing Legal Action Against the Trump Administration
These lawsuits mark California’s 43rd and 44th legal actions against the Trump administration just this year, reflecting the state’s ongoing efforts to challenge federal policies it views as detrimental to its environmental and economic priorities.
https://www.latimes.com/environment/story/2025-10-16/california-sues-trump-administration-over-solar-program-cancellation
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