Court Reversal May Grant Arizona, Hopi $181M in Solar Funds
TL/DR –
The Trump administration unlawfully terminated the Biden-era Solar For All program that promised $181 million for solar projects in low-income communities in Arizona and the Hopi Tribe, according to the rulings of two federal judges. The rulings could lead to the restoration of these grants, even though the judges did not explicitly order reinstatement. The Solar For All program was part of the Inflation Reduction Act and was expected to help around 11,232 moderate- and low-income households save $165 million in electricity costs by installing rooftop solar panels and extending the use of solar energy in rural areas.
“`html
Arizona, Hopi Tribe May Recover Solar Funds After Federal Judges Condemn Trump Administration’s Termination of Grant Program
Following the condemnation of the Trump administration’s termination of a Biden-era grant scheme by two federal judges, Arizona and the Hopi Tribe could see a return of $181 million aimed at solar energy projects in underprivileged communities. The Trump EPA scrapped the Solar For All program, a component of the Inflation Reduction Act, in August 2025, a move that is now deemed illegitimate.
Implemented by The Environmental Protection Agency, the Solar For All program pledged nearly $7 billion in grants in April 2024. By the time the program was abolished, an agency audit reveals that only about $71 million of the total fund had been distributed, but the entire amount had already been allocated to approximately 60 grantees.
As per federal records on USASpending.gov, Arizona received only $42,000 of its $156.1 million grant, whereas the Hopi Tribe received $421,000 of a $25.1 million grant. Following the program’s termination, federal judges in the District of Columbia and Rhode Island issued rulings against the EPA’s decision, potentially paving the way for reinstatement of the grants. Neither judge, however, directly ordered for the grants to be restored. The EPA is currently evaluating the rulings and considering appealing.
Quoting the One Big Beautiful Bill that repealed the Greenhouse Gas Reduction Fund established by the Inflation Reduction Act and revoked all unallocated money, the Trump administration contended that the bill also encompassed the unspent Solar for All funds. In August 2025, EPA Administrator Lee Zeldin announced that the EPA no longer had the power to administer the program or the allocated funds, asserting that “EPA no longer has the authority to administer the program or the appropriated funds,” and that Congress intended to eliminate the funding.
Contrary to this argument, judges in both Rhode Island and D.C. ruled that the Biden EPA’s commitment of the $7 billion and issuance of grant agreements meant the funds were “obligated” and therefore not subject to being rescinded under the One Big Beautiful Bill. U.S. District Court Judge Mary McElroy, a Trump appointee, stated that the Trump administration’s stance “runs contrary to Congress’s clear intent that already obligated Greenhouse Gas Reduction Fund monies … not be disturbed by the repeal”.
Arizona, although not involved in the cases in Rhode Island and D.C., has also contested the cancellation of the program. Attorney General Kris Mayes spearheaded a coalition of 22 states plus D.C. in a federal lawsuit filed in Washington state in October 2025. The coalition argued that the EPA had violated its contract due to the $7 billion in grants being already pledged.
The Governor’s Office of Resiliency anticipated that the program would allow 11,232 moderate- and low-income households to save $165 million in electricity costs, according to Maren Mahoney, the director of the office.. The program intended to install rooftop solar panels and facilitate the use of solar energy in rural areas that the power grid did not serve. It also planned to offer training to meet the growing demand for installers.
Nick Torrey, a lawyer at the Southern Environmental Law Center, criticized the EPA’s interpretation of the law, stating that “EPA just really got it wrong here” and “EPA did the opposite of what Congress was telling it to do. It acted unlawfully.” According to him, the funds should be utilized immediately to provide relief to working families.
“`
—
Read More US Economic News