Over 20 states have filed a lawsuit against the Environmental Protection Agency (EPA), contesting the agency’s decision to terminate a $7 billion initiative designed to enhance access to solar power for low-income households.

The initiative, known as “Solar For All,” was launched in 2022 as part of the Inflation Reduction Act, which allocated subsidies for building rooftop and community solar projects. This action was part of the Biden administration’s commitment to decreasing carbon emissions and aimed to make solar energy available to around 1 million additional American households.

However, in August, the EPA announced the program’s cancellation, with states withdrawing approximately 90% of the grant funds from the awarded accounts, according to the legal complaint.

The EPA has been working to reinstate clean energy funding sanctioned by the Biden administration. This new lawsuit will assess whether the agency overstepped its bounds in this instance. The states involved in the legal challenge had expected the funding to boost solar power availability, lower greenhouse gas emissions from energy production, and decrease energy costs.

“Congress established a solar energy program to make electricity more affordable, but the administration is ignoring the law, focusing instead on conspiracy theories about climate change,” Washington Attorney General Nick Brown stated in a news release. The EPA’s action “places about $156 million in jeopardy” for Washington state, as mentioned in the release.

Earlier this month, a coalition of nonprofit organizations and solar installers lodged a complaint, which resembles a similar lawsuit against the program’s cancellation.

When asked about the recent lawsuit, the White House referred NBC News to the EPA, which typically remains silent on ongoing litigation.

The states involved in the lawsuits are all governed by Democratic officials. Notably, Washington, Arizona, and Minnesota are leading this legal action, which was filed in the Western District of Washington.

The lawsuit contends that the EPA “illegally and unilaterally terminated” the program, breaching the Administrative Procedure Act that regulates federal agencies’ operations. It also claims that the EPA overstepped its “constitutional authority” by attempting to revoke programs and funds approved by Congress.

This latest suit is part of a dual strategy employed by states to counteract the Trump administration’s cuts to clean energy initiatives established under President Joe Biden.

On Wednesday, another group, including states and state energy agencies, filed a separate complaint in the U.S. Court of Federal Claims regarding the cancellation of individual subsidy agreements.

The lawsuit argues that the EPA’s retraction of funds violated distinct subsidy contracts with states and state energy authorities.

It further claims the EPA relied on a “false and malicious interpretation” of the One Big Beautiful Bill, which was enacted during the Trump administration, to support its actions.

While acknowledging that the law granted the administration certain powers to retract Inflation Control Act funds, the complaint asserts that this authority only extended to funds not yet distributed to grant recipients.

A third lawsuit was filed this month in Rhode Island District Court. Solar companies, homeowners, nonprofits, and labor unions are making similar claims. It contends that the EPA’s actions could deny nearly 1 million people access to affordable solar energy and jeopardize “hundreds of thousands of good-paying, high-quality jobs.”