Twenty-four states on Thursday commenced a lawsuit against the Trump administration for cancelling a $7 billion solar grant which would have brought solar energy to more than 900,000 low-income families across the country.

The complaint alleges that the termination of the grant program, Solar for All, contravened the contracts between the EPA and the plaintiffs, stating : 

The EPA’s unilateral terminations breached the express terms of Plaintiffs’ Grant Agreements, which allowed for termination only in the narrow circumstances of substantial noncompliance that materially impairs performance, adequate evidence of waste, fraud or abuse, or material misrepresentation of eligibility status—none of which occurred.

The complaint also argues that the EPA breached its duty of good faith and fair dealing by “destroy[ing] Plaintiffs’ reasonable expectations regarding the fruits of their Grant Agreements.” Additionally, in a partner lawsuit filed in the Western District of Washington, plaintiffs allege violations of the Administrative Procedure Act (APA), contending that the termination was arbitrary and capricious.

California Attorney General Rob Bonta reported California’s decision to join the coalition on Wednesday, condemning the grant termination:

At a time when energy bills are at a record high and only continuing to skyrocket, the Trump Administration is needlessly hampering an industry that can produce safe, reliable, and inexpensive energy. Solar for All was built to deliver relief for all Americans—by lowering energy bills for working families, reducing our carbon footprint, and creating high-quality union jobs that would bolster our economy. We will not let this illegal termination of the Solar for All Program stand. This Administration can try all they want to bend the law, but we will hold them accountable.

By February 2025, the Environmental Protection Agency (EPA) had entered into binding grant agreements with members of each of the 24 plaintiff states. In August, the EPA declared the cancellation of the Solar for All program and began withdrawing funds from the plaintiffs’ accounts. Lee Zeldin, administrator of the EPA, announced the move on social media, stating: 

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. Today, the Trump EPA is announcing that we are ending Solar for All for good, saving US taxpayers ANOTHER $7 BILLION!

Arizona Attorney General Kris Mayes also said that the program would have prevented at least 90,000 tons of CO2 emissions from Arizona’s atmosphere each year. The EPA has declined to comment on the litigation.