Pull to refresh
Logo
What Changed
Following Why Sign Up
Court reinstates $7 billion 'Solar for All' program cut by EPA

Court reinstates $7 billion 'Solar for All' program cut by EPA

Rule Changes

Two federal judges rule EPA illegally canceled $7 billion solar grant program

September 22nd, 2026: Judge Chutkan rules EPA termination unlawful

Overview

Updated Sep 25

Two federal judges have ruled that the Environmental Protection Agency unlawfully canceled the $7 billion Solar for All program. Judge Tanya Chutkan of the U.S. District Court in Washington ruled Sept. 22 that the termination was 'arbitrary and capricious, contrary to law, and in excess of statutory authority.'

Chutkan's ruling covers all Solar for All grants, not just Harris County's. Both judges found Congress only meant to reclaim unspent funds when it repealed the program's authority in July 2025. Recipients like Indiana's $117 million coalition remain cautious because the EPA could appeal, and the funds are still frozen.

Why it matters

If the rulings hold, 900,000 low-income households keep access to subsidized rooftop solar; an EPA appeal could still freeze the funds.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

$7 billion
Total Solar for All grant funding
Awarded to 60 recipients in April 2024 under the Inflation Reduction Act.
900,000+
Households the program was designed to serve
EPA's estimate of low- and moderate-income families intended to benefit.
93%
Share of grant funds EPA deobligated
EPA cut all but 7 percent of obligated balances in August 2025.
60
Grant recipients
States, municipalities, tribes, and nonprofits selected in April 2024.
23
State and DC governmental bodies in the lawsuit
22 states plus the District of Columbia joined a lawsuit that was dismissed in January 2026.
2
Federal judges who ruled the termination unlawful
McElroy in Rhode Island on Sept. 18 and Chutkan in Washington on Sept. 22.
2031
Year funds would sit in Treasury account
EPA told the court the Solar for All funds will remain in a Treasury account until 2031 if not distributed.

Voices

Curated perspectives — historical figures and your fellow readers.

Sign up to generate historical perspectives on this story.

Log in Sign Up

People Involved

Mary S. McElroy
Mary S. McElroy
U.S. District Judge, District of Rhode Island
Ruled Sept. 18, 2026 that EPA's termination was unlawful
 Lee Zeldin
Lee Zeldin
EPA Administrator when the grants were terminated
Ordered Solar for All's termination in August 2025
 Morgan Griffith
Morgan Griffith
House Energy and Commerce Committee member, Virginia Republican
Statements cited by the court on legislative intent
 David Fotouhi
David Fotouhi
EPA Deputy Administrator
Directed immediate termination of Solar for All grants
 Tanya Chutkan
Tanya Chutkan
U.S. District Judge, District of Columbia
Ruled Sept. 22, 2026 that EPA's termination was unlawful

Organizations Involved

Environmental Protection Agency (EPA)
Environmental Protection Agency (EPA)
Federal agency
Defendant in two lawsuits; ordered to reinstate Solar for All in both

Created Solar for All in 2024 and terminated it in 2025.
Southern Environmental Law Center
Southern Environmental Law Center
Environmental legal nonprofit
Plaintiff counsel

Fought to preserve Solar for All funding.
Rhode Island AFL-CIO
Rhode Island AFL-CIO
Labor federation
Lead plaintiff

Joined the suit to protect clean-energy jobs and program funding.
Harris County, Texas
Harris County, Texas
County government
Plaintiff; won Sept. 23, 2026 ruling against EPA

Won a ruling that the EPA unlawfully canceled Solar for All grants.

Timeline

August 2022 September 2026

7 events Latest: September 22nd, 2026 · 1 month ago
Tap a bar to jump to that date

  1. Judge Chutkan rules EPA termination unlawful

    Latest Court Decision

    Judge Chutkan of the U.S. District Court in Washington rules the EPA's termination of Solar for All is unlawful. The ruling applies to all Solar for All grants, not just Harris County's.

  2. Judge rules EPA termination unlawful

    Court Decision

    Judge McElroy rules EPA termination unlawful, vacates decision, orders reinstatement.

  3. Labor groups and nonprofits sue EPA

    Legal

    Rhode Island AFL-CIO and Southern Environmental Law Center file suit over termination.

  4. EPA cancels existing Solar for All grants

    Agency Action

    EPA terminates existing Solar for All grants, deobligates 93 percent of funds.

  5. One Big Beautiful Bill Act repeals program authority

    Legislation

    One Big Beautiful Bill Act signed; repeals Section 134 and rescinds unobligated balances.

  6. EPA launches Solar for All

    Program Launch

    EPA creates Solar for All, awards $7 billion to 60 states, tribes, and nonprofits.

  7. Inflation Reduction Act creates solar grant authority

    Legislation

    Inflation Reduction Act signed, creating Greenhouse Gas Reduction Fund under Clean Air Act Section 134.

Scenarios

1

EPA reinstates Solar for All; rooftop solar programs resume

Likely Resolves by Jan 15, 2027

Discussed by: Southern Environmental Law Center and other plaintiff counsel

The EPA complies with the court's order, restores obligated funds to recipients, and allows state, tribal, and nonprofit programs to resume. Awardees begin disbursing grants for rooftop solar installations for low-income households.

2

EPA appeals to First Circuit; funding stays frozen

Possible Resolves by Dec 15, 2026

Discussed by: Federal Rules of Appellate Procedure (60-day appeal window)

The EPA files a notice of appeal within 60 days. If the First Circuit grants a stay pending appeal, grant balances remain frozen while the case proceeds. An appellate ruling could take a year or more, leaving recipients without access to funds in the meantime.

3

Congress passes new law terminating Solar for All outright

Unlikely Resolves by Jun 1, 2027

Discussed by: Washington Examiner and congressional observers

Congress passes new legislation explicitly canceling obligated Solar for All funds rather than leaving termination to the EPA. A new law would supersede the court's reinstatement order, though it would face the same political constraints that shaped the initial repeal.

4

EPA appeals D.C. ruling, creating parallel litigation

Likely Resolves by Nov 22, 2026

Discussed by: Reuters, Bloomberg Law

The EPA appeals Chutkan's Sept. 23 ruling to the D.C. Circuit while the Rhode Island case heads to the First Circuit. Two appellate courts could reach different conclusions, setting up a possible Supreme Court review.

5

EPA restarts Solar for All with a new application round

Unlikely Resolves by End of 2026

Discussed by: Boston Globe

The EPA complies with the rulings but opens a new competition, forcing the original 60 recipients to reapply. That would delay projects and could exclude some original awardees.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

1972-1975

Nixon's impoundment fights (1972-1975)

President Richard Nixon refused to spend billions in funds Congress had appropriated for housing, environmental, and other programs he opposed. He argued the president had inherent authority to withhold spending. The Supreme Court ruled against the administration in Train v. City of New York (1975).

Then

The Court held that the EPA administrator couldn't withhold funds Congress had appropriated under the Federal Water Pollution Control Act.

Now

Congress passed the Impoundment Control Act of 1974, requiring presidents to get congressional approval to cancel appropriations. The principle that the executive can't unilaterally refuse to spend appropriated funds has held since.

Why this matters now

Solar for All tests the same boundary: whether an agency can cancel grants Congress has already obligated, when Congress rescinded only unspent balances.

January-February 2025

Federal funding freeze litigation (2025)

The White House ordered a government-wide freeze on federal grant and loan disbursements in January 2025. Federal judges in multiple cases blocked the freeze, holding that agencies can't halt spending Congress has appropriated.

Then

Courts issued temporary restraining orders and the freeze was lifted within weeks.

Now

The litigation established a pattern of courts intervening when the executive attempts to impound appropriated funds across agencies.

Why this matters now

Solar for All is a targeted sequel to that fight, now resolved against the same administration in court.

Sources

(17)
+11
The Washington Post ABC News Washington Examiner Associated Press via ClickOrlando Southern Environmental Law Center Reuters via MarketScreener U.S. District Court for the District of Rhode Island Reddit r/energy Reuters Bloomberg Law Canary Media The Boston Globe The Hill Indiana Public Media via Solar Now Smart Cities Dive Bloomberg U.S. District Court for the District of Rhode Island