In our spotlight on business report tonight, a major clean energy setback for New Jersey after the EPA suddenly killed a $7 billion solar program for low-income families.

The state was set to get $156 million out of that $7 billion for new solar projects.

Critics call it illegal and a blow to already rising energy bills.

Correspondent Ted Goldberg has more on what this means for New Jersey ratepayers.

You're basically stealing money from individual households and businesses that would have been benefited from this program by bringing their energy costs down.

After the EPA canceled a $7 billion grant to promote new solar panels, Democrats are accusing the Trump administration of breaking the law.

Congressman Frank Pallone says funds that have been legally obligated cannot be canceled by new legislation.

The bill says you can't affect funds that have already obligated.

It's like a contract.

You can't break a contract.

It's totally illegal for the EPA administrator to now say that I'm going to claw back these funds.

Part of the one big beautiful bill repealed the Greenhouse Gas Reduction Fund, which gave New Jersey $156 million for its Solar for All project.

Administrator Lee Zeldin made the announcement last week saying the cut would save money.

EPA no longer has the authority to administer the program or the appropriated funds to keep this boondoggle alive.

EPA is taking action to end this program for good.

We are committed to the rule of law and being a good steward of taxpayer dollars.

Zeldin claimed that the move would save American taxpayers $7 billion, the full cost of the program.

But Pallone says most of that money has been legally obligated, meaning it cannot be clawed back by the federal government.

The Republicans who voted for it specifically said if the money's been obligated and going to our constituents, we don't want to claw it back.

And to say, oh, well, the bill eliminated the administrative cost, so therefore we can't run the program and we have to take the money back.

I mean, that's just, it's just outrageous.

It's just nonsense.

Solar for All would have helped about 22,000 households in New Jersey put solar panels on their rooftops, saving money at a time when electric bills are jumping.

Solar would help people right now, this year, if they elected to do it.

This program would have helped so many people in New Jersey.

It's unbelievable.

Governor Phil Murphy criticized the EPA, saying at a time when Americans are struggling with skyrocketing energy costs, the Solar for All program would have helped lower costs for working families up and down the Garden State in towns represented by both Democrats and Republicans.

Americans deserve better, and the Trump administration must reconsider this about face.

Assemblyman Robert Karabinchak sponsored a bill that would simplify the permit process for getting solar panels and wants the state to get creative to bring more power on the grid.

All of the flat roofs that we have in New Jersey, the millions and millions of square feet, we should be utilizing this.

I hate mandating anything, but this I would mandate.

You want to build a million square foot warehouse?

I want to see 800,000 square feet of solar on that, and I want to tie it into the grid.

There are lots of places solar can be built on our highways, on our sound barriers and our medians and government properties, rooftops, warehouses, big box stores.

Ed Ptasnik leads the New Jersey League of Conservation Voters, which also condemned the EPA canceling this grant.

The Trump administration has really embraced a drill, baby, drill philosophy that is going to cost families more.

This program alone would have saved $400 a year per household.

Solar energy right now is the cheapest form of energy that you can generate.

It creates good local jobs in New Jersey that can't be outsourced.

It cleans up our air, which helps prevent asthma, cancer and heart disease.

New Jersey's Board of Public Utilities said as part of a statement, the termination of the Solar for All program will have a significant impact on all New Jerseyans, including low-income households and communities.

Trump's decision undermines the state's efforts to expand solar energy access and create jobs in the clean energy sector.

The next step for New Jersey could be to sue the EPA to try and unfreeze that money.

If you were buying a house and you had a mortgage and it was all ready and you were ready to sign, you sign those documents and a mortgage company says, "Oh, by the way, Ted, we're not going to give you the money."

Now, what do you think the seller is going to do to you?

It'll probably be a combined effort nationally, so it probably won't cost the state that much because they'll be joining a bunch of other states and I'm sure red states as well, saying that this money's been contracted and you've got to pay it.

That could be for a judge to decide in the future.

For NJ Spotlight News, I'm Ted Goldberg.

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