Oregon Attorney General Dan Rayfield and 22 other plaintiffs have sued the U.S. Environmental Protection Agency and EPA Administrator Lee Zeldin for ending a $7 billion program to fund solar panels for low-income families.
Congress created the Solar for All program in 2022 as part of the Inflation Reduction Act, directing the EPA to make competitive grants to states and other entities to deploy solar projects in low-income and disadvantaged areas.
EPA selected recipients and awarded program funds to plaintiff states and other grant recipients by August 2024. Oregon and the other plaintiffs moved forward with planning projects and working with stakeholders to develop their solar programs.
Solar for All Complaint by scott.mcclallen
But EPA terminated the program two months ago and clawed back the vast majority of the money already awarded. That has left Oregon and the other plaintiffs without access to the funds to proceed with their solar programs, after the states spent significant time planning and launching programs and committing state funds.
Without that funding, the state can’t move forward with several key programs — including low- or no-cost solar installations for single-family homes, rebates for apartment buildings that help low-income residents, and financial and technical support for new community solar projects, including those in areas served by consumer-owned utilities.
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“Working families are already feeling the strain of rising energy costs – and blocking Oregon’s clean energy programs only makes that worse,” Rayfield said in a statement. “This funding wasn’t just about protecting the environment; it was about lowering bills, creating jobs, helping communities transition to cleaner, more affordable power.”
In July, Congress passed the president’s “One Big Beautiful Bill Act,” which rescinded funds for the Solar for All program that were unobligated as of July 3.
On August 7, the EPA terminated the program.
The One Big Beautiful Bill eliminated the Greenhouse Gas Reduction Fund, which included a $7 billion pot called “Solar for All”.
— Lee Zeldin (@epaleezeldin) August 7, 2025
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… pic.twitter.com/TXS8IYhcoh
Rayfield and a multistate coalition are filing a lawsuit today in U.S. District Court for the Western District of Washington, alleging, among other things, that the EPA violated the Administrative Procedure Act and the U.S. Constitution’s Separation of Powers Doctrine in unlawfully canceling the program.
Joining Attorney General Rayfield in this complaint are the attorneys general of Arizona, California, Colorado, Connecticut, Hawai’i, Illinois, Massachusetts, Maine, Maryland, Michigan, Minnesota, New Jersey, New Mexico, New York, North Carolina, Rhode Island, Vermont, Washington and the District of Columbia. Also joining the complaint are the governors of Kentucky and Pennsylvania, as well as the Wisconsin Economic Development Corporation.
Separately, Oregon joined a lawsuit that was filed yesterday in the U.S. Court of Federal Claims
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