Fighting Back Against ‘Solar for None’: Attorney General Bonta Sues Over Trump’s Latest Environmental Funding Termination

OAKLAND – California Attorney General Rob Bonta, alongside the California Public Utilities Commission (CPUC), today joined a multistate coalition in suing to block the U.S. Environmental Protection Agency (EPA)’s unlawful termination of the $7 billion Solar for All Program. EPA’s termination of the program denies states of critical funds they were depending on for solar energy in low-income and disadvantaged communities nationwide. The program would have helped provide solar energy in their neighborhoods, lowering their electricity bills and creating well-paying union jobs. In a pair of lawsuits, the coalition argues that the EPA’s abrupt termination of the Solar for All Program breached its contractual obligations to the states, that it unlawfully revoked funds that Congress had already obligated, and asks separate courts to declare the terminations unlawful, restore the funding, and reinstate the Solar for All Program.

“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,” said Attorney General Rob Bonta. “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. Every time.” 

“The cancellation of Solar for All funding is not just bad policy, it is illegal," said CPUC President Alice Reynolds. "These grants were lawfully appropriated by Congress and intended to help lower energy costs and transition to a clean energy supply. Revoking the funding is a destabilizing decision, but we will continue to progress toward clean energy for all Californians, driving economic growth and creating green jobs for a sustainable future.”

“The Trump Administration’s clawback of the Solar for All program is a direct assault on clean, affordable energy," said California Energy Commission Chair David Hochschild. "As public servants, it is incumbent upon us to fight for fairness and justice, and that is what this lawsuit sets out to do. The state’s goal to advance a 100% clean energy future depends on programs like this that make solar and storage affordable for all.”

In 2022, Congress appropriated $7 billion to EPA through the Inflation Reduction (IRA) to enable low-income and disadvantaged communities to carry out greenhouse gas emission reduction activities. EPA designed the Solar for All Program to enable recipients to provide financial and technical assistance for the deployment of zero-emission technology, including residential and distributed solar to reduce greenhouse gas emissions in low-income and disadvantaged communities. EPA issued 60 competitive awards in 2024 to states and non-profit organizations, ranging from $43.5 million to almost $250 million per recipient. In August, EPA Administrator Lee Zeldin announced the termination of the program on the social media platform X, falsely asserting the agency no longer had statutory authority to administer the funds. 

If allowed to stand, the termination of this program would threaten the ability of more than 900,000 households in lower-income and disadvantaged communities across the country to obtain credits for low-cost solar energy, and as a result, lower electricity bills. It would also stall progress on clean energy adoption nationwide, particularly in underserved communities — and it would undercut efforts to build a more innovative economy through job creation and workforce development. In California, the EPA is terminating almost $250 million in funds owed to the state, where community solar and storage projects were being built out. For example, the CPUC was set to receive $200 million to build community solar systems, which would offer 20% monthly discounts on electricity bills for participating households — primarily for lower- and middle-income families. The funding also included $9 million for workforce training — enabling more California workers to acquire skills needed for future well-paying, union jobs to help build a sustainable future. 

In the first lawsuit filed yesterday in the Court of Federal Claims, the coalition is alleging that EPA breached its contracts with the states, and each state is seeking money damages. In the second lawsuit filed today in the U.S. District Court for the Western District of Washington, the coalition will allege that the Trump Administration violated federal laws, including the Administrative Procedure Act and the U.S. Constitution, by terminating Solar for All funds — and will seek for the unlawful termination be declared unlawful, and that EPA be ordered to reinstate the Program.

Attorney General Bonta joins the attorneys general of Arizona,Colorado, Connecticut, the District of Columbia, Hawaiʻi, Illinois, Massachusetts, Maine, Maryland, Michigan, Minnesota, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island,Vermont, and Washington, in filing yesterday's complaint  in the Court of Federal Claims. Also joining the complaint are the governors of Kentucky and Pennsylvania, as well as the Wisconsin Economic Development Corporation. 

Attorney General Bonta joins the attorneys general of Arizona, Colorado, Connecticut, Hawaiʻi, Illinois, Massachusetts, Maine, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia, in filing today's complaint in the U.S. District Court for the Western District of Washington. Also joining the complaint are the governors of Kentucky and Pennsylvania, as well as the Wisconsin Economic Development Corporation. 

A copy of the lawsuit filed in the Court of Federal Claims can be found here. A copy of the lawsuit filed in the U.S. District Court for the Western District of Washington will be available here once filed.