Twenty-four U.S. states, led by California, have filed a lawsuit against the Trump administration following the abrupt cancellation of a $7 billion grant aimed at expanding solar energy to low-income families. This federal grant, known as Solar for All, was intended to benefit over 900,000 households nationwide by reducing energy costs and carbon emissions.

The complaint filed on Thursday argues that the termination by the Environmental Protection Agency (EPA) not only violated the express terms of the grant agreements but also breached the implied covenant of good faith and fair dealing. These agreements stipulated termination could only occur under conditions such as substantial noncompliance or evidence of fraud, none of which were cited by the EPA in their termination notice.

In a related legal action in the Western District of Washington, the plaintiffs contend that the grant's cancellation was arbitrary and capricious, violating the Administrative Procedure Act. They argue this move unjustly harms the expectations of the states involved in the program.

California Attorney General Rob Bonta expressed strong opposition to the cancellation, highlighting the timing amidst soaring energy bills and the ongoing energy crisis. "Solar for All was built to deliver relief for all Americans — by lowering energy bills for working families, reducing our carbon footprint, and creating high-quality union jobs that would bolster our economy," Bonta stated. He emphasized the legal commitment to challenging what he views as an illegal move by the administration.

The controversy intensified when EPA Administrator Lee Zeldin took to social media to justify the cancellation. Zeldin argued that the program was inefficient and no longer legally sustainable, claiming it would save U.S. taxpayers from funding a failed initiative.

Arizona Attorney General Kris Mayes also voiced concerns, noting the environmental impact the program's cancellation could have, including the prevention of approximately 90,000 tons of CO2 emissions annually in Arizona alone.

As the legal battle unfolds, the EPA has refrained from commenting directly on the ongoing litigation. The coalition of plaintiff states remains firm in their stance, seeking to overturn the decision and reinstate the vital funding for solar energy advancements under the Solar for All initiative.