NEW YORK – The Environmental Protection Agency is facing a legal firestorm after Attorney General Letitia James joined a coalition suing to halt the agency’s brazen attempt to gut the Solar for All (SFA) program. The EPA illegally yanked nearly $250 million earmarked for New York, part of a staggering $7 billion in funding intended to deliver affordable solar power to nearly one million low-income households across the country. This isn’t just bureaucratic shuffling; it’s a direct hit to communities already struggling to keep the lights on.
The lawsuits, filed in both the Court of Federal Claims and the United States District Court for the Western District of Washington, accuse the EPA of unlawful termination of SFA and demand damages for the rescinded grants. The EPA initially obligated the $7 billion in August 2024, selecting 60 recipients including states, tribal governments, and non-profits. New York’s share – a hefty $249,800,000 awarded to the New York State Energy Research and Development Authority (NYSERDA) – was already being put to work, with plans in motion to install solar infrastructure and lower energy bills.
“Providing more communities with affordable clean energy will help lower energy bills and tackle the climate crisis,” Attorney General James stated bluntly. “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.” The timing is particularly galling, coming after states had already begun the painstaking process of program development, community outreach, and contractor negotiations. This isn’t just about the money; it’s about wasted effort and broken promises.
Governor Kathy Hochul didn’t mince words either, calling the administration’s move a direct contradiction of its claims of pursuing U.S. energy independence. “The Statewide Solar for All program is part of a true all-of-the-above energy strategy in New York,” she said, highlighting the potential benefits for health, the environment, the economy, and New Yorkers’ wallets. The funds were authorized as part of the 2022 Inflation Reduction Act, specifically designed to address energy inequality and promote clean energy access.
Doreen M. Harris, President and CEO of NYSERDA, painted a grim picture of the ripple effect. “The Environmental Protection Agency’s unlawful termination of the federal Solar for All program is creating a crippling ripple effect on the clean energy industry while forcing hard-working Americans to choose between household essentials,” she stated. The move comes at a time when New Yorkers are already squeezed by rising costs of living, making access to affordable energy more critical than ever. It’s a cruel blow to those who could benefit most.
The administration initially enacted legislation in July 2025 rescinding unobligated funds. However, the EPA then went further, illegally targeting already-obligated funds – money that had been formally promised to states like New York. This isn’t a matter of budgetary adjustments; it’s a blatant disregard for legal commitments and a betrayal of communities counting on a cleaner, more affordable future. The lawsuits aim to force the EPA to reinstate the funding and hold the administration accountable for its actions. Expect a long, messy fight.”
Key Facts
- State: New York
- Agency: NY AG
- Category: Public Corruption
- Source: Official Source ↗
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