Federal Judge Rules Trump Administration Unlawfully Terminated Seven Billion Dollar Solar Program

EPA Administrator Lee Zeldin had characterized the Biden-era Solar for All grant program as a “boondoggle” before the agency canceled it in August 2025.
Solar for All grants were awarded to 60 states and nonprofit groups to support solar-energy and storage projects nationwide; the broader program also directed funding to municipalities and tribes.
The coalition challenging the termination included the Rhode Island AFL-CIO, Rhode Island Center for Justice, Solar United Neighbors and other environmental and legal advocacy groups, with the labor organization serving as lead plaintiff.
Rhode Island AFL-CIO President Patrick Crowley said the ruling could produce “thousands and thousands of union jobs” nationwide if the program resumes, while Conservation Law Foundation attorney Alex St. Pierre said communities had “waited long enough” for affordable solar access.
A federal judge in Rhode Island ruled that the Trump administration unlawfully terminated the $7 billion Solar for All program in August 2025, Energy Now reported. Judge Mary McElroy found that the One Big Beautiful Bill Act did not give the EPA power to cancel grants already awarded to help over 900,000 low- and moderate-income Americans access solar energy.
The EPA must now continue administering existing grants to the 60 states and nonprofit groups that received awards under the Biden-era Inflation Reduction Act. OPB noted that the program had directed funding to municipalities and tribes nationwide. EPA Administrator Lee Zeldin previously called the program a "boondoggle" before the cancellation.
Judge Mary McElroy vacated the EPA's termination decision after finding the Trump administration overstepped its legal authority. Washington Examiner reported that the court ruled the agency illegally terminated the program without proper justification. McElroy determined that only unobligated funds—money not yet distributed—could be rescinded under the bill, but already-awarded grants must continue.
The ruling means the EPA cannot strip funding from projects already in motion. Law360 confirmed that the judge effectively halted the administration's effort to dismantle the $7 billion solar initiative. This preserves one of the Biden administration's flagship clean-energy programs.
The coalition that sued to block the termination included the Rhode Island AFL-CIO, Rhode Island Center for Justice, Solar United Neighbors, and other advocacy organizations. Yahoo News reported that the judge's decision will restore the program that was designed to make solar power accessible to lower-income Americans. The AFL-CIO served as the lead plaintiff in the case.
Rhode Island AFL-CIO President Patrick Crowley predicted the ruling could generate "thousands and thousands of union jobs" nationwide if the program resumes. The coalition argued that Solar for All would cut energy costs and expand clean-energy access in underserved communities. Each reinstated grant now moves forward without interruption.
The Environmental Protection Agency said it is reviewing the court decision and considering whether to appeal. The agency had moved quickly under the new administration to terminate the program, citing budget concerns. OPB noted that EPA Administrator Lee Zeldin had characterized the Biden program as wasteful before the cancellation order.
If the EPA appeals, the case could drag on for months or years. But for now, grants already awarded to nonprofits and states must continue. The judge's decision represents a significant legal setback for the Trump administration's effort to reverse Biden-era clean-energy initiatives.
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