20+ States Sue US Govt for Canceling $7B ‘Making America Expensive’ Program
TL/DR –
The Solar for All program, launched in 2024 and designed to provide cleaner, affordable energy to low-income households, was cancelled after the passage of the Big Beautiful Bill. This led to nearly two dozen US states filing lawsuits against the Trump administration due to the termination of the program, which was set to improve access to solar energy, create jobs, and reduce household electricity costs. Following the cancellation, some states, cities, and homeowners have sought alternative means of funding for solar panel installations, while community initiatives for clean energy education have also increased.
Lawsuits Filed Over Termination of $7 Billion Solar Energy Program
Close to twenty-four states have filed lawsuits against the Trump administration in the aftermath of the cancellation of the Solar for All program, a major energy initiative that was launched on Earth Day in 2024. The program aimed to bring affordable, clean energy to almost a million low-income and disadvantaged households, but was prematurely terminated following the passage of the Big Beautiful Bill.
Response to Program Termination
Since October 16, Democratic attorneys general from over 20 states, along with Washington, D.C., have lodged two lawsuits in response to the scrapping of the program. This step follows the announcement made by Lee Zeldin, the Environmental Protection Agency’s administrator, in August, declaring the end of Solar for All a short period after the funds were briefly unfrozen.
Impact of Solar for All
The program, which was funded via the Inflation Reduction Act approved by the previous administration, was designed to facilitate the installation of solar panels in numerous communities nationwide. In addition to promoting the transition towards clean energy and veering away from polluting energy sources, the program also aimed to strengthen the power grids, enhance U.S. energy independence, boost local economies, and reduce household electricity expenses.
According to statements from state attorneys general, the termination of this program will result in significant losses. California is set to lose approximately $250 million in federal funds, as per California Attorney General Rob Bonta. Similarly, Arizona will lose $156 million, leading to a 20% increase in energy bills for over 11,000 Arizona families, according to Attorney General Kris Mayes of Arizona. Moreover, marginalized communities in Northern Arizona, such as the Hopi Tribe, have lost a $25 million grant that would have allowed them to introduce electricity and battery storage to hundreds of homes, some of which have never been connected to the electricity grid.
“The Trump administration is trying to hold us in the past, tethered to fossil fuel companies,” commented Bonta in a call mentioned by Reuters. “In doing so, Trump is making America more expensive and more polluted.”
Equitable Access to Solar Energy
The Solar for All grants were originally conceived to enhance equitable access to solar energy, promote environmental justice, and save over 900,000 American households $350 million annually, as per a 2024 news release under the previous administration. The program was also intended to improve general equitable access, considering the lack of safe and consistent access to electricity for tens of thousands of U.S. residents.
Job Creation and Solar for All
In addition to promoting clean energy, Solar for All was also expected to contribute to job creation. The termination of the program has been criticized by the BlueGreen Alliance, a coalition of labor unions advocating for green jobs, which described the termination as an attack on working families. “This decision will raise energy prices and slow the growth of the solar energy we need to fill demand, which is at an all-time high,” stated the executive director of the alliance, Jason Walsh.
Seeking Legal Recourse
The lawsuits filed by the attorneys general are demanding both monetary damages and the reinstatement of the program. The plaintiffs argue that the administration overstepped federal law by rescinding “congressionally obligated funds” or funds that had already been approved by Congress. A separate lawsuit against the administration has also been filed by a group of unions, nonprofits, and homeowners.
Local Solutions
While the legal battles continue, several states, cities, and homeowners have already begun to seek alternative solutions. Some have been able to secure local funding and proceed with at-home panel installations, while others have decided to join community solar programs to save money and reduce their environmental impact.
There have also been communal efforts to promote cleaner, more affordable energy options. For instance, in Maine, one of the states involved in the lawsuits, the Center for an Ecology-Based Economy has organized monthly “energy cafés” that allow local residents to learn about home solar and other energy options.
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