Attorney General James sues EPA over termination of Solar for All clean energy grants

Attorney General Letitia James - Official website
Attorney General Letitia James - Official website
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New York Attorney General Letitia James has joined a coalition in filing two lawsuits aimed at protecting billions of dollars in grant funding intended to bring affordable solar power to nearly one million low-income and vulnerable households across the United States. The legal action follows the Environmental Protection Agency’s (EPA) decision in August to end the Solar for All (SFA) program and rescind funding that had already been allocated to states.

The lawsuits, filed in the Court of Federal Claims and the United States District Court for the Western District of Washington, seek court orders declaring the EPA’s termination of SFA unlawful, as well as damages for the loss of individual grants worth billions of dollars.

“Providing more communities with affordable clean energy will help lower energy bills and tackle the climate crisis,” said Attorney General James. “The Solar for All program delivers critical resources to help install solar power on homes across the country. The EPA’s cancellation of Solar for All is illegal and unconstitutional, and I will keep fighting to ensure our communities have access to these funds.”

Governor Kathy Hochul commented, “The Trump administration’s continued assault on clean energy programs, including the attempt to cancel the Solar for All Program, is in direct contrast to the President’s claims of wanting U.S. energy independence. The Statewide Solar for All program is part of a true all-of-the-above energy strategy in New York that is designed to generate significant benefits for our health, environment, economy, and for the thousands of New Yorkers who would benefit from lower electric bills.”

Doreen M. Harris, President and CEO of the New York State Energy Research and Development Authority (NYSERDA), stated, “At a time when affordability is top of mind for every New Yorker, especially for those with low to moderate incomes, the federal government should be partnering with states to advance an abundance of locally produced, clean energy that can help provide cost savings on monthly electric bills. The Environmental Protection Agency’s unlawful termination of the federal Solar for All program is creating a crippling ripple effect on the clean energy industry while forcing hard-working Americans to choose between household essentials as they try to budget for the increasing costs of electricity, heat and groceries.”

The SFA program was established under the 2022 Inflation Reduction Act to provide funding for states to help low-income communities access clean energy technologies. The EPA selected 60 grant recipients, including states, tribal governments, local governments, and nonprofit groups. In August 2024, $7 billion was obligated through SFA to deliver residential solar power to more than 900,000 low-income households nationwide. NYSERDA was awarded nearly $250 million as part of this initiative.

In July 2025, new legislation rescinded any SFA funds not yet obligated. However, in August 2025, the EPA also began withdrawing funds that had already been obligated. On August 7, EPA Administrator Lee Zeldin announced, “the Trump EPA is…ending Solar for All for good.” The agency subsequently shut down the SFA program and removed up to 90 percent of states’ SFA funds without explanation.

Attorney General James and her coalition argue in District Court that ending SFA violates the Administrative Procedure Act and Congress’s constitutional authority over federal spending. In the Court of Federal Claims, they contend that revoking obligated grants constitutes an illegal breach of contract and taking of property.

The coalition seeks a court order reinstating SFA and awarding damages for terminated grants, including NYSERDA’s nearly $250 million grant. Attorneys general from multiple states and other officials have joined James in both lawsuits.



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