Judge Vacated EPA Solar Grant Termination
The ruling restores the $7 billion Solar for All program, affecting 60 previously selected grant recipients.
Updated on Sept. 18, 2026 in Utilities
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Should the federal government be required to honor previously awarded grants when administrations change?
A federal judge ruled that the EPA acted unlawfully when it terminated the $7 billion Solar for All program last year. The decision mandates a reconsideration of the grants originally awarded to 60 nonprofits, tribes, and state entities in 2024.
Why it matters
The court's decision forces the EPA to address the status of billions in funding that the agency had unilaterally rescinded. This creates immediate compliance and funding uncertainty for the dozens of organizations that had initiated projects based on the 2024 awards.
The federal court ruling restores a $7 billion grant program originally allocated in the 2022 Inflation Reduction Act. The decision affects 60 distinct nonprofit, tribal, and state groups that were selected for funding in 2024.
The players
EPA
The federal agency tasked with regulating environmental programs and managing national grant initiatives.
Lee Zeldin
The administrator of the EPA responsible for the decision to terminate the Solar for All program.
Mary McElroy
A federal judge based in Rhode Island who issued the ruling regarding the agency's grant authority.
The details
Judge Mary McElroy vacated the termination, noting the agency retained over $3 billion in funds for expenses despite calling the program a boondoggle. The EPA had attempted to rescind the grants in August 2025, one month after the One Big Beautiful Bill Act removed the program's underlying funding source. Recipients must now wait for federal guidance on how the court's order translates into actual disbursement schedules.
Timeline
2022: Congress enacted the Inflation Reduction Act to fund the initiative.
2024: The EPA awarded grants to 60 organizations.
July 2025: Trump signed the One Big Beautiful Bill Act.
August 2025: The EPA announced the termination of the Solar for All program.
September 12, 2026: Judge McElroy ruled the termination unlawful.
Market Landscape
This ruling marks a significant judicial check on executive authority to unilaterally cancel congressionally authorized spending. It follows a pattern of legal challenges concerning the implementation of the 2022 Inflation Reduction Act.
Entities that were previously awarded grants should consult with counsel to monitor if the EPA issues new guidance for fund disbursement. Owners in the solar sector should treat these restored funds as subject to ongoing legal or administrative review.
The takeaway
The court's decision underscores the volatility of federal grant programs tied to shifting political mandates. Operators should maintain detailed records of all communication regarding federal grant agreements to protect against retroactive rescissions.
Further reading
For more on how regulatory shifts impact project funding, see Utilities.
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Should the federal government be required to honor previously awarded grants when administrations change?
