Capitol News

Michigan Attorney General Dana Nessel, along with 22 other state plaintiffs, has filed a lawsuit against the U.S. Environmental Protection Agency (EPA) and its Administrator Lee Zeldin. The lawsuit challenges the EPA's decision to terminate a $7 billion program intended to bring solar energy to more than 900,000 low-income and disadvantaged households nationwide. In addition to this action, Michigan and 23 other grant recipients have filed a separate suit in the U.S. Court of Federal Claims seeking damages for what they describe as an unlawful breach of grant agreements by the EPA.

The Solar for All program was established by Congress in 2022 as part of the Inflation Reduction Act. It directed the EPA to distribute competitive grants to states and other organizations to support solar projects in low-income areas. By August 2024, all program funds had been awarded to plaintiff states and other recipients. Michigan began implementing its share of these funds, with plans for pilot projects and further rounds of grantees. However, two months ago, the EPA ended the program and reclaimed most of the funds already allocated. This move has halted Michigan’s solar initiatives and left communities without expected benefits.

Michigan was awarded about $156 million through the Solar for All program in 2024. The Michigan Department of Environment, Great Lakes, and Energy had already selected 13 pilot projects across the state and planned a second round of funding for 2025. The cancellation has suspended these efforts.

Attorney General Nessel stated: “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. 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 the Michigan Department of Environment, Great Lakes, and Energy, commented: “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. 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 lawsuit filed in U.S. District Court for the Western District of Washington alleges that the EPA violated both the Administrative Procedure Act and the U.S. Constitution’s Separation of Powers Doctrine by canceling the program without proper authority.

Nessel is joined in this action by 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, and the District of Columbia. The governors of Kentucky and Pennsylvania as well as the Wisconsin Economic Development Corporation are also part of the complaint.

In addition, Nessel joined another lawsuit in the U.S. Court of Federal Claims arguing that the EPA breached its agreements with states and violated its duty of good faith by canceling Solar for All grants. The plaintiffs are seeking monetary damages as well as interest and fees.

This coalition includes attorneys general from Arizona, California, Colorado, Connecticut, Hawaiʻi, Illinois, Massachusetts, Maine, Maryland, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia, as well as governors from Kentucky and Pennsylvania and the Wisconsin Economic Development Corporation.