Overview

• The Rhode Island AFL-CIO, Rhode Island Center for Justice, Solar United Neighbors, several solar firms, and an Atlanta homeowner filed suit Monday in U.S. District Court in Rhode Island challenging EPA’s August cancellation.
• Plaintiffs seek a declaration that the termination was unlawful and an injunction requiring the agency to reinstate and administer the grants and to stop efforts to claw back funds.
• The complaint argues Congress rescinded only unobligated balances in July’s spending law, noting EPA had already obligated all $7 billion across 60 awards, while EPA Administrator Lee Zeldin says the agency lost authority to run the program.
• Program estimates cited in the filing project benefits for more than 900,000 low-income and disadvantaged households, about $350 million in annual bill savings, multi‑gigawatt solar deployment, and significant job creation.
• The case arrives as related fights over the Greenhouse Gas Reduction Fund continue, with recent appellate decisions steering some grant disputes to the Court of Federal Claims; EPA declined to comment on the new lawsuit.