EPA Cancels Over $400 Million in Texas Solar Funding

The Environmental Protection Agency (EPA) has canceled over $400 million in federal solar energy funding for Texas, which is part of a nationwide shutdown of the Biden-era Solar for All program.

EPA Administrator Lee Zeldin (R) announced the cancelation this week, citing the July 4^th passage of the “One Big Beautiful Bill,” which repealed funding from the Inflation Reduction Act. “EPA no longer has the authority to administer the program or the appropriated funds to keep this boondoggle alive,” Administrator Zeldin said.

The Environmental Protection Network, a group of former EPA staffers, disputed Administrator Zeldin’s interpretation, arguing that the repeal only applied to unawarded funding and “does not apply retroactively.” The group, which is already suing over previous cancellations, called the termination “legally and procedurally indefensible.”

Texas had been awarded two major grants in April 2024. A Harris County-led coalition, which included Houston, San Antonio, Austin, Waco, and Dallas County, secured nearly $250 million to expand rooftop solar, battery storage, and energy efficiency, particularly in disadvantaged communities.

“That funding would have helped low-income families save an estimated $1,740 annually on their utility bills,” Harris County Attorney Christian Menefee said, calling the cancellation “short-sighted and deeply harmful.” Menefee is currently running for Texas’ 18^th congressional district, which was vacated by Rep. Sylvester Turner (D) after his passing.

A second $156 million grant was awarded to the Clean Energy Fund of Texas, in partnership with Texas Southern University’s Bullard Center, to build community solar projects and microgrids across the South and Southeast.

The program’s funds were first frozen earlier this year following an executive order from President Donald Trump (R) directing agencies to review all Inflation Reduction Act spending. Administrator Zeldin criticized the initiative’s use of intermediaries to distribute money, calling it a “massive dilution of money.”

Former EPA officials argue that nearly a million families nationwide will face higher energy costs without the program, calling it a bad deal for Americans.

“This solar program would have paid for itself,” said former senior advisor Zealan Hoover.

Power Up Harris County, which is a partner in the coalition, vowed to keep pushing for the funds, saying in a statement that “A contract is a contract, and we look forward to seeing this funding restored.”