Trump administration cancels Vermont solar grants for low-income communities

Vermont will lose $62.5 million in federal funding for solar projects aimed at cutting electricity costs for low-income residents after the U.S. Environmental Protection Agency ended the Solar for All program.

Austyn Gaffney reports for VTDigger.

In short:

• The funding cut affects a $7 billion national initiative launched under the Inflation Reduction Act to bring solar power to disadvantaged communities in 49 states and six Native American tribes.
• Vermont’s Public Service Department and Attorney General’s Office are considering litigation to restore the grant, which was set to support affordable housing projects and lower renters’ utility bills starting in 2026.
• EPA officials said the program was eliminated under a new law that repealed the Greenhouse Gas Reduction Fund, with Administrator Lee Zeldin calling it a “grift” and claiming middlemen absorbed 15% of program costs.

Key quote:

The program “significantly reduces electric bills for nearly a million working class Americans, creates many thousands of jobs and cuts carbon emissions. That’s why the Trump administration wants to illegally cut it. We won’t let them.”

— U.S. Sen. Bernie Sanders, I-VT

Why this matters:

Cutting federal solar funding for low-income households limits access to clean, affordable energy in communities that often bear the highest energy costs. Rural and disadvantaged areas typically face higher utility bills, older housing stock, and fewer renewable energy options. Solar installations can reduce dependence on fossil fuels, lower carbon emissions, and buffer households from price spikes in electricity markets. Without such programs, states may struggle to finance projects that bring long-term savings to residents and reduce environmental harm. The decision also reflects a broader political shift away from climate-focused investments, potentially slowing progress toward national emission-reduction goals and leaving vulnerable populations with fewer tools to manage rising energy costs.

Read more: Vermont climate goals face setbacks as federal support disappears