Judge Orders EPA to Reinstate $7B Solar for All Program

A federal judge has vacated the EPA's decision to terminate the $7 billion Solar for All program, ruling that the agency acted without statutory authority. The ruling, issued by Judge Mary McElroy on September 18, 2026, requires the EPA to reinstate the program, which was part of the Inflation Reduction Act's Greenhouse Gas Reduction Fund. The program aimed to provide solar energy access to low-income communities, and its cancellation had left billions in funding unspent. The decision is seen as a significant setback for the Trump administration's efforts to roll back clean energy initiatives.
Key points
- Judge Mary McElroy ruled that the EPA's termination of the Solar for All program violated the Administrative Procedure Act.
- The $7 billion program was part of the $27 billion Greenhouse Gas Reduction Fund created by the Inflation Reduction Act.
- The EPA had canceled the program in August 2025 following the passage of the One Big Beautiful Bill Act.
- The ruling clears the way for the program to resume, potentially benefiting over 900,000 households.
- The EPA is reviewing the decision and considering options for appeal.
Background
The Solar for All program was established under the Inflation Reduction Act of 2022, which created the Greenhouse Gas Reduction Fund to accelerate the clean energy transition. The program was designed to help low-income and disadvantaged communities access solar energy, with the EPA obligating the funding by September 2024. The Trump administration moved to terminate the program in August 2025, citing the One Big Beautiful Bill Act, which repealed the Greenhouse Gas Reduction Fund. This ruling is part of a series of legal setbacks for the administration's efforts to stifle renewable energy development, including previous court actions against wind and solar projects.
How outlets are covering it
Utility Dive and Smart Cities Dive both emphasize the legal and procedural aspects of the ruling, highlighting the judge's finding that the EPA acted outside its statutory authority. pv magazine USA provides additional context on the program's structure and impact, noting that only $53 million of the $7 billion had been disbursed before the cancellation. The sources also highlight the political dimensions, with EPA Administrator Lee Zeldin calling the program a 'boondoggle' and Senator Bernie Sanders praising the ruling as a 'win-win-win.' The perspectives differ in their emphasis on the program's economic and environmental benefits, with pv magazine USA providing detailed projections of job creation and emissions reduction.
Why it matters
The ruling has significant implications for clean energy policy and the administration of federal grants. It sets a precedent for the limits of executive authority in terminating congressionally funded programs and could influence future legal challenges to other clean energy initiatives. The reinstatement of the Solar for All program could lead to increased solar adoption in low-income communities, potentially reducing energy costs and supporting job creation. The decision also highlights the ongoing tensions between the executive and legislative branches over the implementation of clean energy policies.
What to watch
The EPA is expected to appeal the ruling, which could lead to further legal battles. The reinstatement of the program may face delays as the agency reviews its options and the legal process unfolds. The outcome of the appeal could have broader implications for other clean energy programs and the administration's ability to roll back federal initiatives. Stakeholders, including state governments and clean energy advocates, will be watching closely for the next steps in this legal and policy dispute.
- Federal judge restores $7B Solar for All program, says EPA illegally axed it Utility Dive
- EPA unlawfully canceled $7B Solar for All program, judge rules Smart Cities Dive
- Federal court strikes down EPA cancellation of $7 billion Solar for All program pv magazine USA
- Trump's EPA unlawfully terminated $7 billion solar grant program, judge rules Reuters
- Court reinstates $7B ‘Solar for All’ program axed by Trump The Hill
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