The Alaska Solar for All termination program has ignited controversy after the Trump administration canceled $125 million in solar energy grants statewide. The Environmental Protection Agency confirmed it would end the Solar for All program earlier this month due to the One Big Beautiful Bill Act.
The $7 billion initiative created through the 2022 Inflation Reduction Act aimed to expand solar power nationwide and reduce household energy costs. The Alaska Energy Authority and the Tanana Chiefs’ Conference each secured $62.5 million to deliver solar systems across dozens of communities.
Both groups expected the funding to lower reliance on costly diesel fuel, a primary energy source in rural Alaska, transported by barge. Senator Lisa Murkowski’s office said the agency’s move contradicts the bill’s language, which rescinded only unobligated balances and not obligated grants.
Spokesperson Joe Plesha criticized the decision, noting the EPA assured Alaska recipients their funds would remain untouched before the announcement. Murkowski joined Alaska’s delegation in supporting the broader bill, which contained provisions boosting oil development.
However, she rejected the EPA’s interpretation and called for a cancellation reversal after potential investigation and litigation. The Alaska Energy Authority planned to use half its grant for community solar installations while partnering with the state housing agency to subsidize residential projects.
Meanwhile, the Tanana Chiefs Conference expected to create tribally led projects serving 4,500 households, saving about $2.7 million annually. Curtis Thayer, executive director of the Alaska Energy Authority, warned that the cancellation undermines efforts to offset Alaska’s extremely high electricity costs.
He argued that solar, wind, hydro, and nuclear energy could displace expensive fuels in villages. The Alaska Public Interest Research Group labeled the decision unlawful, while analyst June Okada warned that the termination would increase energy prices statewide.
