EPA cuts 'Solar For All' program Image By EPN Staff Key Points The EPA says it no longer has statutory authority under the “One Big Beautiful Bill,” which eliminated the Greenhouse Gas Reduction Fund created by the IRA. Senate Democrats and governors argue the administration cannot claw back obligated funds already allocated by Congress. Colorado and other states are preparing lawsuits, citing a prior federal ruling that blocked a similar attempt in January. The program was meant to cut electricity costs and expand clean energy access for disadvantaged communities. Without the grants, tens of thousands of households risk losing out on affordable solar energy. The U.S. Environmental Protection Agency is rescinding $7 billion in funding for the “Solar for All” program, a decision that impacts 36 states that last year received grants to provide solar power to residents in low-income communities. They include: Arizona, $156 million California, $250 million Colorado, $156 million Illinois, $156 million New York, $250 million North Carolina, $156 million Virginia, $156 million “The One Big Beautiful Bill eliminated the Greenhouse Gas Reduction Fund, which included a $7 billion pot called ’Solar for All,’” EPA Administrator Lee Zeldin said on X in August. “In some cases, your tax dollars were diluted through up to FOUR pass-through entities, each taking their own cut off the top! The bottom line is this: EPA no longer has the statutory authority to administer the program or the appropriated funds to keep this boondoggle alive.” Democrats in Congress and governor’s mansions, along with program grantees, oppose the elimination of funding. “Solar for All reduces electricity costs — particularly for low-income households – but if this misguided federal decision happens, it will do the exact opposite, costing communities across our state,” said Colorado Gov. Jared Polis. “In Colorado, we will continue exploring avenues to fight this illegal termination of congressionally appropriated and duly obligated funds, just as we have successfully done before.” Why it matters The EPA’s action is likely to be challenged in court, according to reporting by the Associated Press and the New York Times. The "Solar for All" program was authorized by the $27 billion Greenhouse Gas Reduction Fund under the Inflation Reduction Act of 2022 (IRA) to finance greenhouse gas emission-reducing technologies and activities. A week after Zeldin’s announcement, Senate Democrats stated that the agency does not have the authority to rescind obligated funds. The letter contends the One Big Beautiful Bill Act only authorizes the elimination of “unobligated balances” but not funds that have been allocated, including the $7 billion "Solar for All" funds. The letter accuses Zeldin of undermining “thousands of projects that will deliver more affordable housing, community centers for refuge during extreme weather events and clean energy to American communities” and illegally seizing funds from grants retroactively. The bigger picture This is the second time the administration has attempted to end funding for "Solar for All." A January executive order, “Unleashing American Energy” directed all federal agencies to pause climate change related programs. In response, the Office of Management and Budget instructed agencies to halt funding for programs under the IRA including the "Solar for All" program. In response to a lawsuit by Colorado and 22 other states and the District of Columbia, Judge Mary McElroy of the U.S. District Court in Rhode Island ordered agencies to reinstate funding in a ruling that contended the administration does not have the authority to rescind funds allocated by Congress. Additional details The U.S. Energy Information Administration expects that 7% of the country’s electric power will come from solar in 2025. Coloradans generate 3.7% of their electricity from solar panels according to the state.
