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that EPA “purportedly acted based on its misguided understanding” of the One Big Beautiful Bill Act (OBBBA), which repealed the IRA provision creating the Greenhouse Gas Reduction Fund under which the Solar for All program was created. The plaintiff alleged that OBBBA only repealed unobligated balances and that, because EPA had fully obligated the plaintiff’s Solar for All funds prior to OBBBA’s enactment, the grant funds were not rescinded.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.

Breach of contract action against the United States seeking money damages for unilateral termination of Solar for All grant agreement.

Indiana Community Action Association Inc. v. United States

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Solar for All Grantee Filed Breach of Contract Action Against U.S

Filed

United States of America

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

People who are less able to respond to the effects of climate change due to having limited financial or physical assets

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Actions or measures to adapt terrestrial systems to climate change.

Actions or measures to adapt freshwater systems to climate change.

Actions and measures to adapt and increase resilience of societies and the economy to climate change.

Actions or measures to adapt freshwater, coastal and marine systems to climate change.

Actions to reduce emissions in energy generation and supply.

Air pollution involves harmful contaminants in the air, affecting both indoor and outdoor environments. It can lead to health issues like respiratory diseases and heart problems, and climate impacts such as global warming. Pollutants can damage plants, trees, habitats, and water bodies like rivers and lakes.

Production of electricity and heat from solar irradiation.

People with different national or cultural traditions from the dominant population

Social and cultural groups that share collective ancestral ties to the lands and natural resources where they live, occupy or from which they have been displaced

Work that is productive and delivers a fair income, security in the workplace and social protection for all, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

This sector involves the wholesale and retail selling of goods.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Solar for All Grantee Filed Breach of Contract Action Against U.S

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Greenhouse gas

Economic sector

Adaptation/resilience

Finance