Indiana Community Action Association Inc. v. United States

Indiana Community Action Association Inc.—“a statewide not-for-profit membership corporation serving all of Indiana’s 92 counties” that has “an organizational mission to help the state’s 22 Community Action Agencies … address conditions of poverty”—filed suit in the U.S. Court of Federal Claims asserting that the U.S. Environmental Protection Agency (EPA) breached a grant agreement under the Solar for All program established under the 2022 Inflation Reduction Act (IRA). The complaint sought money damages resulting from EPA’s alleged breach of the $117,470,000 agreement. The plaintiff alleged that EPA’s unilateral termination of the grant agreement on August 8, 2025 was “a clear, unambiguous, and material breach” of the agreement. The complaint noted that EPA “purportedly acted based on its misguided understanding” of the One Big Beautiful Bill Act (OBBBA), which repealed the IRA provision creating the Greenhouse Gas Reduction Fund under which the Solar for All program was created. The plaintiff alleged that OBBBA only repealed unobligated balances and that, because EPA had fully obligated the plaintiff’s Solar for All funds prior to OBBBA’s enactment, the grant funds were not rescinded. The complaint asserted breach of contract and breach of the duty of good faith and fair dealing, as well as a claim that removal of monies from the account that held the plaintiff’s grant funds constituted an illegal exaction in violation of the Due Process Clause of the Fifth Amendment. In the alternative, the plaintiff asserted an unconstitutional taking claim.