Trump Administration Spends Nearly $2 Billion to Dismantle Offshore Wind Projects

The Trump administration is allocating nearly $2 billion to energy companies in exchange for abandoning U.S. offshore wind projects, a move that has sparked a congressional investigation by House Democrats. The strategy comes after federal courts blocked President Donald Trump’s previous attempts to halt offshore wind development through executive orders.

Three such agreements have been announced so far, with the largest being a $1 billion payout to French company TotalEnergies. The deal essentially refunds the company’s lease fees for offshore wind projects near North Carolina and New York on the condition that it reinvests the money in fossil fuel projects instead.

U.S. Rep. Jared Huffman of California, the top Democrat on the House Natural Resources Committee, called the arrangement a “scam” and accused the administration of planning to “light a lot of federal taxpayer money on fire if we let them.”

In a letter sent Wednesday to TotalEnergies and shared with The Associated Press, Huffman and Rep. Jamie Raskin, the ranking Democrat on the House Judiciary Committee, informed the company that Democrats have launched an investigation into what they believe may be illegal agreements. The lawmakers are demanding documents and communications related to the deal and advising the CEO against accepting the funds.

When asked for comment, TotalEnergies referred to its earlier statement, where CEO Patrick Pouyanné explained that the company was abandoning U.S. offshore wind development in exchange for reimbursement because such projects are “not in the country’s interest.”

The administration announced two more deals on Monday, with Bluepoint Wind and Golden State Wind agreeing to end their leases for nearly $900 million, also contingent on equivalent investments in fossil fuels. Both companies are co-owned by Ocean Winds, a joint venture between EDP Renewables and French energy giant Engie.

Michael Brown, CEO of Ocean Winds North America, defended the decision, stating, “When market conditions change, we must adapt.” Once these deals are completed, Ocean Winds will retain just one remaining U.S. offshore wind project — SouthCoast Wind off Massachusetts — which has seen its development slow under the current administration.

Opponents of offshore wind projects have praised the administration’s approach. Robin Shaffer, president of Protect Our Coast New Jersey, called it “the latest strategy” and a “winner,” adding that the administration “is well within their rights to do this and private businesses can’t be forced to build anything.”

Senate Majority Leader Chuck Schumer of New York took a different view, describing the buyouts as a “bailout for fossil fuel donors dressed up as a deal” and pointing out the contradiction in Trump’s position. “Donald Trump spent years calling offshore wind subsidies a waste of taxpayer money,” Schumer said. “Now his administration is handing nearly $2 billion of those very same taxpayer dollars to companies to abandon clean energy projects that would have powered millions of American homes and created thousands of good-paying union jobs.”

Environmental advocates warn that forcing developers to shift from wind energy to oil and gas will set back U.S. climate goals. Amber Hewett, senior director of offshore wind energy at the National Wildlife Federation, noted that burning fossil fuels remains the largest contributor to global climate change.

The lease buyouts are part of a broader campaign against renewable energy. Since returning to office in January 2025, Trump has tried multiple approaches to halt wind energy development, including ordering a temporary pause on leasing and permitting, canceling plans for new offshore wind development areas, and implementing additional reviews for wind and solar projects.

However, federal courts have repeatedly blocked these efforts, allowing construction on existing wind farms to resume and stopping the administration from requiring presidential approval for all solar and wind projects on federal lands.

Kristoffer Svendsen, assistant dean for energy law at the George Washington University Law School, views the lease buyouts as “a last attempt to close down as many offshore wind projects as possible” after the administration’s court defeats. He noted that he’s unaware of any similar arrangements where energy project owners were paid to abandon their developments.

“This saga never ends. They continue to surprise the industry and those of us following the industry,” Svendsen said, adding that energy companies will likely redirect their investments to Europe and Asia as the future for new U.S. offshore wind development appears “quite bleak.”

“At this point if you’re interested in offshore wind, you’ll most likely go to a jurisdiction where they want you,” he observed.

Meanwhile, the global wind industry continues to grow elsewhere. According to the Global Wind Energy Council’s annual report, a record 165 gigawatts of onshore and offshore wind capacity was installed worldwide last year, with 138 countries now incorporating wind energy into their power systems. Asian markets, particularly China and India, accounted for 80% of this growth.

David Carroll, CEO and chief renewables officer for Engie North America and chair of the American Clean Power Association, expressed pessimism about the future of U.S. offshore wind. He cited the administration’s revocation of permits and halting of fully permitted projects as actions that have eroded business certainty.

“The offshore wind industry does not have a strong future here in the U.S. And that’s unfortunate,” Carroll said in a recent interview. “The Northeast needs more energy and that is one of the very key ways we can get energy in the Northeast.”