Federal Judge Vacates EPA's Termination of $7 Billion Solar for All Program

Federal Judge Vacates EPA's Termination of $7 Billion Solar for All Program

On Friday, September 18, 2026, District Judge Mary McElroy (D.R.I.) ruled that the Trump administration illegally terminated the $7 billion Solar for All program, which was intended to make solar power accessible to more than 900,000 lower-income Americans. McElroy wrote that "Congress clearly intended the EPA to continue administering the Solar for All grants that were already obligated¹. The EPA acted contrary to this intent and without any other statutory authority when it terminated the program," and she vacated the termination. Per Bloomberg Law's account of the ruling, the judge found the EPA "violated the Administrative Procedure Act by terminating the program and also acted 'in excess of its statutory authority.'" The EPA said Friday it is "reviewing the decision and considering options for appeal."

EPA Administrator Lee Zeldin had rescinded the funds in August 2025, calling the Biden-era program a "boondoggle." The Rhode Island case was brought by the Rhode Island AFL-CIO, the Rhode Island Center for Justice, and Solar United Neighbors; Rhode Island AFL-CIO president Patrick Crowley called the decision "a big victory" for states, saying it would support "thousands and thousands of union jobs across the United States."

The ruling fits a broader judicial pattern on the administration's green-bank clawbacks: Solar for All was part of the $27 billion Greenhouse Gas Reduction Fund created by the 2022 climate law, and last month a divided federal appeals court held the administration improperly terminated the fund's separate $20 billion portion. A parallel suit by the attorneys general of more than a dozen states over the canceled solar funding was dismissed for lack of jurisdiction in June and is on appeal.

What it means: Another court has rejected the administration's premise that it can terminate already-obligated grant programs it dislikes — the same congressional-intent logic Judge Talwani used in striking the retroactive grant-cutting loophole (Federal Judge Strikes Down Trump Administration's Retroactive Grant-Cutting Loophole). The vacatur restores the program unless the government wins a stay or appeal, making EPA's next filing the tell.