Great Lakes Wire

Michigan Attorney General Dana Nessel has joined a coalition of 22 other states in filing lawsuits against the U.S. Environmental Protection Agency (EPA) and its administrator, Lee Zeldin, over the termination of a $7 billion federal program aimed at providing solar energy to low-income households. The Solar for All program was established by Congress in 2022 as part of the Inflation Reduction Act to support solar projects in disadvantaged communities through competitive grants.

According to the lawsuit, the EPA had selected recipients and distributed all program funds by August 2024. Michigan received about $156 million for its Solar for All initiative, with the state’s Department of Environment, Great Lakes, and Energy announcing 13 pilot projects and planning additional grants for 2025. However, two months ago, the EPA ended the program and reclaimed most of the awarded funds. This action has stalled planned projects and halted anticipated benefits for Michigan communities.

Nessel criticized the move: “The Trump Administration’s decision to illegally rescind congressionally approved grants – funds that were already being put to work in our communities – is unlawful and deeply harmful to residents across Michigan and the country,” she said. “We’ve seen this playbook from the White House before. The administration has tried to pull the same stunt by canceling congressionally mandated programs, and we stopped them then. We plan to do the same now to ensure the Trump Administration cannot unlawfully strip away these important investments that lower energy costs and make clean energy more accessible to Michigan families.”

Phil Roos, Director of Michigan's Department of Environment, Great Lakes, and Energy, also commented on the impact: “I applaud Attorney General Nessel for standing up for Michigan families and challenging the EPA’s decision to revoke funding for the MI Solar for All program. This program is a critical investment in our state’s energy future — lowering costs for low-income households, creating good-paying local jobs, and helping us achieve greater energy independence,” he said. “It would expand access to clean, affordable solar energy while supporting Michigan’s economy and American manufacturing. We remain committed to fighting for this program and the thousands of Michiganders it would benefit.”

The legal complaint filed in U.S. District Court for the Western District of Washington alleges that EPA's actions violated both administrative law procedures and constitutional principles regarding separation of powers.

Alongside Michigan, attorneys general from Arizona, California, Colorado, Connecticut, Hawaiʻi, Illinois, Massachusetts, Maine, Maryland, Minnesota, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington State as well as Washington D.C., governors from Kentucky and Pennsylvania along with Wisconsin Economic Development Corporation are participating in these legal actions.

A related suit filed in U.S. Court of Federal Claims seeks damages based on claims that EPA breached grant agreements with states by ending their Solar for All awards without proper cause or process.

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