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EPA Ends Solar for All Grant Program and Pursues Clawback of Unspent Funds

Authority for the program expired under a recent tax-and-spending law, the EPA said.

Environmental Protection Agency director Lee Zeldin arrives before President Donald Trump speaks during an AI summit at the Andrew W. Mellon Auditorium, Wednesday, July 23, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)
Environmental Protection Agency (EPA) Administrator Lee Zeldin speaks during the signing of the memorandum of understanding between U.S. and Mexico to achieve a permanent solution to the decades-old Tijuana River sewage crisis, in Mexico City, Mexico July 24, 2025. REUTERS/Raquel Cunha/File Photo
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Overview

  • On August 7, the EPA terminated Solar for All and announced plans to claw back unobligated funds from the $7 billion program.
  • The initiative, created under the Inflation Reduction Act’s Greenhouse Gas Reduction Fund, had allocated $7 billion across 60 state, tribal and nonprofit recipients to support solar installations for over 900,000 low-income households.
  • According to Atlas Public Policy, only $53 million of the allocated funds has been disbursed, with most grantees still in early planning phases.
  • The agency maintains that recent legislation repealed its authority over unspent balances, but recipients argue that fully obligated contracts are protected from clawback.
  • Multiple grantees have filed lawsuits to block the terminations and Senator Bernie Sanders has pledged to fight in court and Congress to preserve the program.