Trump Administration Moves to Terminate $7 Billion 'Solar for All' Grants for Low-Income Households

Washington D.C. – The Trump administration is preparing to terminate $7 billion in federal grants under the "Solar for All" program, a significant initiative aimed at helping low- and moderate-income families install solar panels on their homes. This move, reported on August 5, 2025, by sources briefed on the matter, marks a further escalation in the administration's efforts to roll back climate-related spending enacted under the previous administration. The grants, part of the 2022 Inflation Reduction Act, were intended to reduce energy costs and advance environmental justice for nearly a million households.

The "Solar for All" program, launched in 2023 by the Biden administration and championed by Senator Bernie Sanders (I-Vt.), was designed to provide financial assistance to underserved communities for residential solar deployment. The Environmental Protection Agency (EPA) had awarded the full $7 billion to 60 recipients, including state agencies, non-profit organizations, and Indigenous tribes. However, most of these funds have yet to be disbursed, leaving them vulnerable to the current administration's actions.

This termination aligns with President Trump's broader energy policy, which prioritizes fossil fuel production over renewable energy initiatives. The administration has been systematically withdrawing federal support for clean energy programs, a drive led by figures like Russell Vought, head of the Office of Management and Budget. Congress recently passed the "One Big Beautiful Bill," which aimed to claw back unobligated grants from the Inflation Reduction Act, providing a legislative basis for such terminations.

The EPA is reportedly drafting termination letters to the grant recipients, seeking to shift the awarded money back into an unobligated status. This action follows earlier freezes on "Solar for All" funding in February, which led to legal challenges and temporary injunctions. Zealan Hoover, former EPA director of implementation under President Biden, stated, "Solar for All is laser focused on helping nearly a million low-income families afford electricity at a time when their bills keep going up."

Critics argue that terminating the program will disproportionately harm vulnerable families struggling with rising energy costs and undermine efforts to combat climate change. Senator Sanders voiced strong opposition, stating, "At a time when working families are getting crushed by skyrocketing energy costs and the planet is literally burning, sabotaging this program isn’t just wrong — it’s absolutely insane." The move is expected to face continued legal scrutiny and strong resistance from climate advocates and affected communities.