States sue Trump administration over terminated solar funding

Officials in more than 20 states and Washington, D.C. are suing the federal government over a decision to ax a Biden-era program to provide solar power to disadvantaged communities. 

In a pair of legal filings this week, the states argued that the Environmental Protection Agency (EPA) move to cut the $7 billion Solar for All (SFA) program was unlawful and unconstitutional and a breach of its contract with the states.

“EPA has no lawful authority to deobligate any of Plaintiffs’ funds because…Congress directed EPA to appropriate the SFA Funds, EPA obligated the SFA Funds, and Congress did not direct that the SFA Funds be deobligated,” one of the suits says.

The Trump administration said in August that it would end the program as part of an effort to save money for the taxpayers. 

Under the program written into the 2022 Inflation Reduction Act,  the money was distributed to 60 entities including states, nonprofits, tribes and local governments. 

The Trump EPA argued that provisions in this year's Big, Beautiful Bill that repealed “unobligated” balances of the program allowed it to take the funds back. 

The states, in their suit, note that the provision only applies to “unobligated” funds and says that all of the funds in question had actually been obligated. 

“Congress did not, however, rescind any funds that had been obligated by ‘the day before the date of enactment’ of H.R. 1, which is July 3, 2025. All of the funds awarded To Plaintiffs were obligated by August 16, 2024,” they wrote. 

“Beyond the fact that this energy infrastructure funding has already been appropriated to our state and is owed to Arizonans, protecting solar projects and lower electricity bills is personal to me,” said Arizona Attorney General Kris Mayes, in a written statement. 

“Arizona families are already facing sky-high electricity bills, and I will not let the EPA wriggle out of its commitment to fund solar energy projects that would lower costs for more than 11,000 Arizona households,” Mayes said. 

The suits came from Arizona, Washington State, Minnesota, California, Colorado, Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont and D.C.

Kentucky Governor Andy Beshear (D), Pennsylvania Energy Development Authority Chair Jessica Shirley and the Wisconsin Economic Development Corporation also joined the suit.

The suit is one of at least three that have been filed over the EPA’s move. The agency declined to comment.