States Sue Trump Administration Over $7B Solar Program Cancellation, Citing Legal Violations and Climate Impact
October 16, 2025
Supporters of the program emphasize its role in lowering energy costs, creating local jobs, and building resilient, clean energy infrastructure, especially during natural disasters.
The lawsuits also highlight that the cancellation undermines efforts to reduce reliance on fossil fuels and fight climate change, with California and other states asserting that the EPA's actions are unlawful and violate grant agreements.
The legal challenge underscores ongoing disputes over federal environmental policies, with California having filed 43rd and 44th lawsuits this year against the Trump administration, reflecting broader resistance to federal rollbacks on clean energy initiatives.
North Carolina and other states have also joined the legal fight, claiming the cancellation harms low- and medium-income families by eliminating solar options, increasing energy costs, and reducing grid resilience.
The coalition argues that the program's termination was unlawful, citing violations of legal procedures, and aims to secure damages and the return of federal funds to support low-income and rural families.
This case exemplifies the broader conflict between state governments and federal authorities over environmental and social programs, with advocates warning that the cancellation hampers efforts to promote affordable, clean energy.
While EPA representatives have not responded to requests for comment, the legal actions continue to challenge the administration's approach to climate and energy policies, emphasizing the importance of protecting federal funding and legal commitments.
Nearly two dozen U.S. states, led by California and Arizona, are suing the Trump administration over the cancellation of the $7 billion Solar for All grant program, which aimed to expand solar energy access for low-income communities.
The lawsuit argues that the EPA's decision to rescind the funds, made in August 2024 after a law was passed earlier that year, violated federal laws and the constitutional separation of powers, with EPA Administrator Lee Zeldin named as a defendant.
These legal actions, filed by Democratic attorneys general and energy organizations from 21 states and D.C., seek to recover billions of dollars in federal funds and reinstate the program, which was designed to benefit nearly 900,000 low-income households.
California alone expects to lose around $250 million, and Arizona about $156 million, impacting projects like solar development for the Hopi tribe and increasing energy bills by approximately 20% for thousands of households.
Summary based on 23 sources
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Sources

The Guardian • Oct 16, 2025
Nearly two dozen states sue to stop Trump ending $7bn solar grant program
Los Angeles Times • Oct 16, 2025
California sues Trump administration over 'Solar for All' program cancellation - Los Angeles Times
NBC News • Oct 16, 2025
More than 20 states sue EPA over canceled solar power grants
AP News • Oct 16, 2025
Lawsuit filed against Trump administration for cutting solar project funds | AP News