A federal judge has dealt a significant setback to the Trump administration's push to dismantle Biden-era climate initiatives, ruling that the Environmental Protection Agency (EPA) unlawfully terminated a $7 billion program designed to expand rooftop solar access in low-income communities.
Judge Mary McElroy, a Trump appointee in Rhode Island, vacated the EPA's decision to end the Solar for All (SFA) program and rescind its funding. The ruling, issued late Tuesday, rejected the administration's argument that the program's remaining balances were subject to cancellation under the One Big Beautiful Bill Act (OBBBA), which rescinded "unobligated" funds from the Inflation Reduction Act.
McElroy wrote that Congress's intent was clear: the EPA was to continue administering the already obligated SFA grants. "The OBBBA did not convert SFA funding into a lump-sum amount subject to EPA's discretion," she stated. "Defendants acted contrary to this intent, and with no other statutory authority, when they terminated the SFA program."
The decision marks a notable legal check on the administration's broader efforts to slash federal spending and roll back climate-related programs. It also underscores the ongoing tensions between the executive branch and the judiciary over the scope of presidential authority in managing congressionally appropriated funds.
An EPA spokesperson said the agency is "reviewing the decision and considering options for appeal," signaling that the legal fight may not be over.
Advocates applaud ruling
Environmental groups, including those that filed suit over the termination, hailed the ruling as a victory for communities that stand to benefit from lower energy costs. Nick Torrey, a senior attorney at the Southern Environmental Law Center, said in a statement: "The court ruled the Trump Administration never should have terminated Solar for All because Congress intended it to continue, and EPA broke the law when it killed the program and pocketed the money."
Torrey added that with electricity bills rising, "low-cost solar projects — which guarantee big savings — are needed now more than ever." He urged the EPA to release the funds promptly.
The Solar for All program was a cornerstone of the Biden administration's climate agenda, aiming to deploy rooftop solar in disadvantaged neighborhoods and reduce energy burdens. Its future now hinges on the EPA's next move, with potential appeals likely to keep the case in the courts for months.
This ruling comes amid a broader pattern of judicial pushback against the administration's cost-cutting measures, as seen in other recent cases involving post-9/11 security reforms and executive power limits. The administration's response to such setbacks may shape its approach to implementing its policy agenda.
