Pennsylvania Governor Sues Trump Administration Over Frozen IRA Funds

Pennsylvania Gov. Josh Shapiro announced a lawsuit on Thursday against President Donald Trump’s administration for freezing funding made available through the Inflation Reduction Act.

As Utility Dive reported, Trump ordered a freeze to IRA funds in an executive order made his first day in office. According to the governor’s office, Pennsylvania state agencies have not been able to access the Solar for All funds or other IRA funding, despite a federal judge ruling on Monday that the current administration must comply with a previous order that blocked the IRA funding freeze, CBS News reported. This means the judge had ruled that the administration cannot currently freeze funds from the IRA, although CBS News reported that multiple states have claimed that they continue to be denied access to the funds.

Shapiro argues that the state has not been able to access $1.2 billion of federal funding, and another $900 million in funding to the state has been slated for “undefined review by federal agencies” before the state can access these funds.

Gov. Josh Shapiro on Thursday sued President Donald Trump’s administration over its alleged failure to disburse more than $2 billion in federal funds to Pennsylvania, despite a federal court ordering the Trump administration to restore the funding. 🔗 inquirer.com/news/pennsyl…

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— Philadelphia Inquirer (@inquirer.com) February 13, 2025 at 12:27 PM

“The federal government has entered into a contract with the Commonwealth of Pennsylvania, promising to provide billions of dollars in Congressionally-approved funding that we have committed to serious needs — like protecting public health, cutting energy costs, providing safe, clean drinking water, and creating jobs in rural communities,” Shapiro shared in a press release. “With this funding freeze, the Trump Administration is breaking that contract — and it’s my job as Governor to protect Pennsylvania’s interests.”

Shapiro noted that he had been working with Pennsylvania’s Congressional delegation for weeks to regain access to the funding to no avail.

“While multiple federal judges have ordered the Trump Administration to unfreeze this funding, access has not been restored, leaving my Administration with no choice but to pursue legal action to protect the interests of the Commonwealth and its residents,” Shapiro stated.

As the Natural Resources Defense Council (NRDC) reported, Pennsylvania was awarded $156,120,000 last year for solar installations, battery storage and energy upgrades for low-income and underserved communities in the state. In total, the state’s Solar for All program was slated to add solar installations for 14,000 households within a five-year timeframe.

Additionally, the state argued that it has been restricted from accessing grant funding for projects, such as $800 million for clean water infrastructure, $400 million for an emissions mitigation program for manufacturing and industrial companies, and additional millions of dollars earmarked for a program that brings reliable electricity to rural communities, the lawsuit stated.

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— Democracy Docket (@democracydocket.com) February 14, 2025 at 1:15 PM

As Utility Dive reported, funds are also being withheld for a project that plugs and remediates former oil and gas well sites. 

While there are two lawsuits in progress on behalf of 22 states and private organizations against the IRA funding freeze, Shapiro is the first governor to sue over the frozen IRA funding.

“For communities throughout Pennsylvania, the Solar for All program helps lower utility bills and encourages clean, reliable energy systems that protect our environment and public health,”  Robert Routh, Pennsylvania policy director at NRDC, said in a statement. “By interrupting Solar for All funding, the Trump administration is stalling important infrastructure projects and putting Pennsylvania’s move toward a cleaner, more affordable energy economy on the line.” 

Many other states have also been impacted by the freeze to IRA and Solar for All funding. According to the NRDC, the Solar for All program consists of $7 billion toward clean and locally produced energy projects. In total, the project could bring solar energy to 900,000 low-income households and save households $350 million in energy bills.

“The administration’s EO has left local officials and grant program managers uncertain about the legality of its directives,” Routh said. “While solar energy developers and advocates wait for clarity, the funding freeze leaves upcoming projects in turmoil.”