EPA cancelling $7B in community solar grants, Dems call it 'illegal'

The Environmental Protection Agency has announced it will claw back $7 billion in already earmarked funds from the Solar for All community grants and then eliminate the program, a move that Democrats claim is against the law.

“This money was intended for our constituents and communities to help lower energy bills,” Energy and Commerce Committee Ranking Member Frank Pallone, D-N.J., stated Friday. “Clawing these funds back isn’t just brazenly illegal – it’s a betrayal by this Administration of working families who will now pay higher energy bills just so Republicans can grind their axe against clean energy.”

The repeal of the program, however, directly implements orders from the One Big Beautiful Bill Act, which President Donald Trump signed into law a month ago. Among multiple other green energy policies, the OBBBA repeals the Greenhouse Gas Reduction Fund, which the Solar for All program falls under.

The program, funded by taxpayer dollars via the 2022 Inflation Reduction Act, has already promised funds to 60 grant recipients across the U.S. The money was meant for the creation or expansion of solar programs meant to lower electricity bills for approximately 900,000 low-income households and increase their access to solar-produced energy.

The abrupt rescinding of the funds, though allowed for by law, will disrupt plans in 49 states. However, EPA Administrator Lee Zeldin said that “very little money” has actually been spent and that recipients are still “very much in the early planning phase, not the building and construction process.”

“But the bottom line again is this: EPA no longer has the authority to administer the program or the appropriated funds to keep this boondoggle alive,” Zeldin added.

Republicans targeted dozens of similar federal green energy programs and grants in the OBBBA, arguing that such subsidies create a false demand for unreliable sources of electricity that have minimal positive impact on the environment.

The Solar for All program in particular wasted taxpayer dollars, Zeldin said, by diluting the billions of dollars through pass-through entities, with middlemen taking a 15% cut of total funds “by conservative estimates.”

Additionally, the program received an exemption from the Build America, Buy America law, which requires federal agencies to use American workers, products and infrastructure for projects funded by American taxpayers.

States including Ohio, Illinois, Arizona, Missouri, Virginia and Michigan had each been awarded more than $100 million from the Solar for All program and have already planned on how to disperse the promised funds.

Democratic governors were quick to condemn the EPA’s decision, with Gov. Tony Evers of Wisconsin – which received over $62 million worth of grants – deeming it “unnecessary,” as The Center Square reported.