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NY takes legal action to restore solar funding for low-income communities

New York Attorney General Letitia James is leading a legal fight to protect nearly $250 million in clean energy funding meant to bring affordable solar power to thousands of low-income households across the state.

This week, James joined a multi-state coalition in filing two lawsuits against the U.S. Environmental Protection Agency (EPA) after the agency abruptly ended the Solar for All program — a nationwide clean energy effort created under the 2022 Inflation Reduction Act.


The lawsuits, filed in both federal district court and the U.S. Court of Federal Claims, argue that the EPA’s decision to revoke already-promised funding is illegal, unconstitutional, and a breach of contract.

“The EPA’s cancellation of Solar for All is illegal and unconstitutional, and I will keep fighting to ensure our communities have access to these funds,” James said.

What is Solar for All?

Solar for All was designed to help nearly a million low-income households nationwide access rooftop solar power and lower their energy bills. In August 2024, the EPA awarded $7 billion in grants to 60 recipients, including states, local governments, and nonprofit groups.

New York’s share — nearly $250 million — was awarded to the New York State Energy Research and Development Authority (NYSERDA) to launch statewide solar projects focused on vulnerable and underserved communities.

State agencies had already begun developing solar programs, meeting with residents, negotiating with contractors, and investing in clean energy infrastructure.

Why the lawsuits?

In July 2025, Congress passed a bill rescinding unspent clean energy funds. But according to James and her fellow attorneys general, the EPA overreached by revoking money that was already obligated to states under Solar for All.

In August, EPA Administrator Lee Zeldin announced the program was “ending for good,” and soon after, the agency pulled back up to 90% of states’ funding with little explanation.

The lawsuits seek to:

  • Reinstate the full program and its funding, including New York’s $250 million grant.
  • Declare the EPA’s actions unlawful, violating both federal law and the Constitution.
  • Recover damages for what states argue is an illegal breach of contract.

Governor Kathy Hochul backed the lawsuits, calling the federal move “a direct contrast to the President’s claims of wanting U.S. energy independence.”

A broader clean energy fight

The legal action comes as New York continues pushing toward its clean energy goals — including cutting emissions, reducing household energy costs, and expanding solar access in low-income areas.

Energy experts say programs like Solar for All are essential for closing the energy equity gap.

“The EPA’s unlawful termination… is creating a crippling ripple effect on the clean energy industry,” said Doreen Harris, NYSERDA President and CEO.

New York joins more than 20 states, the District of Columbia, and several state economic agencies in the legal battle, which could impact solar access for hundreds of thousands of families nationwide.