Federal Judge Orders Reinstatement of $7 Billion Solar for All Program, Citing Congressional Intent Over Trump-Era Cancellation

A U.S. District Court judge in Rhode Island ruled on September 18, 2026, that the Environmental Protection Agency (EPA) unlawfully terminated the $7 billion Solar for All grant program established under the Biden administration's Inflation Reduction Act. Judge Mary McElroy declared the termination contrary to law and vacated it, finding that Congress intended the EPA to continue administering already-obligated grants despite the subsequent passage of the One Big Beautiful Bill Act.

The program, part of the $27 billion Greenhouse Gas Reduction Fund, aimed to finance residential solar installations and related assistance for low-income and disadvantaged communities, with projections to benefit over 900,000 households. It awarded grants to 60 recipients including states, tribes, and nonprofits in 2024. An audit showed that by early August 2025, only about 1% of funds—roughly $71 million—had been drawn down, primarily for planning.

The Trump administration, through EPA Administrator Lee Zeldin, canceled the program in August 2025 after the One Big Beautiful Bill rescinded unobligated balances and eliminated administrative funding authority, labeling it a "boondoggle." The ruling rejected arguments that plaintiffs—primarily unions like the Rhode Island AFL-CIO and nonprofits such as Solar United Neighbors—lacked standing, as they were prospective beneficiaries rather than direct grantees.

This decision highlights tensions in U.S. energy policy between executive efforts to curtail green subsidies and judicial interpretations preserving appropriated funds. It aligns with broader litigation challenging the administration's rollback of Inflation Reduction Act programs, including parallel cases on the larger Greenhouse Gas Reduction Fund. The EPA has indicated it is reviewing the ruling and considering an appeal. If upheld, it could compel disbursement of nearly $7 billion, potentially supporting union jobs and community solar projects while testing limits on rescinding obligated grants.

The low initial disbursement rate underscores implementation challenges in such programs, raising questions about efficiency even as advocates emphasize long-term cost savings and workforce development for low-income households.