RHODE ISLAND — A federal judge in Rhode Island ruled that the Trump administration illegally terminated the $7 billion Solar for All program. District Judge Mary McElroy vacated the termination, restoring the funding mechanism that had been rescinded by federal regulators.

The Environmental Protection Agency rescinded the Solar for All funds in August 2025. McElroy wrote that the EPA acted contrary to congressional intent and without any other statutory authority when it terminated the program. The ruling determined that the agency lacked the legal standing to unilaterally cancel the grants after they had been obligated.

McElroy wrote in the ruling that Congress clearly intended the EPA to continue administering the Solar for All grants that were already obligated. The decision restores a key component of federal climate investment that had been targeted for elimination during the current presidential term.

The lawsuit was filed in Rhode Island by the Rhode Island AFL-CIO labor organization, the Rhode Island Center for Justice, and the nonprofit Solar United Neighbors. Patrick Crowley, president of the Rhode Island AFL-CIO, said he was proud to be the lead plaintiff. The coalition argued that the cancellation violated the statutory framework established by previous legislation.

Crowley said that if and when the program does get up and running, there will be thousands and thousands of union jobs created across the United States. The program was designed to generate employment opportunities alongside its environmental objectives. The Solar for All program was intended to make solar power accessible to more than 900,000 lower-income Americans.

EPA Administrator Lee Zeldin called the Solar for All grant program a boondoggle. The administration had characterized the spending as inefficient prior to the court's intervention. This perspective stood in contrast to the arguments presented by the plaintiffs regarding economic and environmental benefits.

The $7 billion Solar for All program was part of the $27 billion Greenhouse Gas Reduction Fund. The fund represents a substantial portion of federal climate financing, with Solar for All comprising a portion of the total allocation. The Trump administration canceled $20 billion slated for eight community development banks and nonprofit organizations for projects to combat climate change.

The Greenhouse Gas Reduction Fund was established in the climate law passed in 2022 under former President Joe Biden. The legislative history of the fund traces back to efforts to expand renewable energy infrastructure through federal grants. The program's structure was designed to leverage public funds for private and community-based solar projects.

In May 2026, solar supplied more of the nation’s electricity than coal for the first time. This shift in energy generation occurred shortly before the legal challenges regarding the funding reached their recent conclusions. The milestone marked the growing role of solar power in the national energy mix.

The EPA stated it is reviewing the decision and considering options for appeal. The agency has not yet indicated whether it will seek further judicial review of the Rhode Island ruling. The outcome remains subject to potential higher court proceedings.

Why It Matters

The reinstatement of the Solar for All program affects the distribution of billions of dollars in federal climate funding. The $7 billion allocation is intended to support more than 900,000 lower-income households in accessing solar energy. The legal battle reflects the ongoing conflict between executive agency authority and congressional intent regarding environmental spending.

The decision follows a series of judicial rulings that have shaped the status of the Greenhouse Gas Reduction Fund. With solar power recently surpassing coal in electricity generation, the availability of these funds influences the pace of renewable energy adoption. The case also shows the role of labor organizations and environmental groups in challenging federal policy changes.

Timeline

The One Big Beautiful Bill Act, containing tax and spending policies forming the core of President Donald Trump's second-term agenda, was signed into law on July 4, 2025. President Donald Trump’s tax and spending law passed in Congress in July 2025.

A federal judge in Washington dismissed the case brought by state attorneys general for lack of jurisdiction in June 2026. A divided federal appeals court ruled last month that the Trump administration improperly terminated the Greenhouse Gas Reduction Fund. Patrick Crowley, president of the Rhode Island AFL-CIO, said that if and when the program does get up and running, there will be thousands and thousands of union jobs created across the United States.

What's New

Donald Trump is President of the United States (2017–2021; since 2025).