Second Judge Rules EPA's $7B Solar for All Cancellation Unlawful — SkimNews
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- Judge Tanya Chutkan of the U.S. District Court for D.C. ruled Tuesday that the EPA's termination of the $7 billion Solar for All program was "arbitrary and capricious, contrary to law, and in excess of statutory authority," and that the vacatur applies to the agency's program-wide policy decision, not just Harris County's grant.
- The EPA eliminated Solar for All in August 2025, citing the One Big Beautiful Bill Act; the Harris County lawsuit argued the OBBBA "provides no authority for EPA's Elimination Decision."
- The Texas Solar for All Coalition was awarded nearly $250 million in 2024 from the Inflation Reduction Act's Greenhouse Gas Reduction Fund, with Harris County — home to Houston — leading the coalition and securing more than $54 million.
- A Rhode Island federal court ruled on Friday that the EPA's termination was procedurally unlawful in a separate suit filed by downstream beneficiaries of Solar for All grants, making this the second court loss for the agency in less than a week.
- The EPA told Smart Cities Dive it is reviewing both rulings and considering appeal options; a third lawsuit by 22 states and D.C. filed in the Western District of Washington was dismissed in January.
- Harris County Judge Lina Hidalgo called the ruling "a really important victory for energy resilience," and County Attorney Abbie Kamin said she will "continue to stand up against improper federal agency actions."
Why it matters: Two federal courts in one week have now ruled the EPA's cancellation of the $7 billion Solar for All program unlawful, with Judge Chutkan's decision setting aside the agency's program-wide policy determination — meaning funding restoration isn't limited to Harris County alone. For low-income households and community solar hubs in grantee regions, this opens a path back to nearly $250 million in Texas awards and billions more nationwide that the EPA tried to kill in August.
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