Trump Administration Pays $1 Billion to TotalEnergies to Halt US Offshore Wind Projects
PROVIDENCE, R.I. (AP) — The Trump administration has agreed to pay French energy giant TotalEnergies nearly $1 billion to abandon its plans to build wind farms off the East Coast, a move signaling a renewed commitment to fossil fuels and a rollback of clean energy initiatives. The Department of Interior announced the agreement on Monday, March 23, 2026.
Deal Details and Project Cancellation
TotalEnergies will receive a refund of its lease fees for projects planned off the coasts of North Carolina and New York. In exchange, the company has pledged not to develop any new offshore wind projects in the United States. The refunded funds will be reinvested in fossil fuel projects, specifically the construction of a liquefied natural gas (LNG) plant in Texas and further development of its oil and gas activities, according to TotalEnergies CEO Patrick Pouyanné. Pouyanné stated the move represents a “more efficient use of capital” within the U.S. Energy sector.
TotalEnergies had initially paused development of the two projects after the 2024 election. The company purchased the lease for its Carolina Long Bay project in 2022 for approximately $133 million, aiming to generate over 1 gigawatt of power. The New York and New Jersey lease, acquired in 2022 for $795 million, had the potential to generate 3 gigawatts of clean energy.
Political Reactions and Controversy
The agreement has drawn sharp criticism from Democratic governors and environmental groups. New York Governor Kathy Hochul condemned the deal as a “pay-not-to-play scheme” and an “outrageous abuse of taxpayer dollars,” reiterating her commitment to an “all-of-the-above” energy approach. North Carolina Governor Josh Stein labeled the deal “a terrible deal for the people of North Carolina and our country,” highlighting the state’s potential for offshore wind energy generation.
Environmental groups have denounced the agreement as a “billion-dollar bribe” to kill clean energy, arguing that it undermines efforts to combat climate change. Lena Moffitt, executive director of Evergreen Action, stated that the Trump administration is “paying them to walk away” after repeatedly losing legal battles over attempts to halt offshore wind construction.
Interior Secretary Doug Burgum defended the agreement, stating that it would prevent American taxpayers from “paying for ideological subsidies” and would support the development of “dependable, affordable power.”
Trump Administration’s Energy Policy Shift
The deal reflects President Trump’s broader policy shift towards prioritizing fossil fuels. He has consistently argued that increased fossil fuel production will lower energy costs, enhance reliability and bolster U.S. Global competitiveness. This approach contrasts sharply with the Biden administration’s efforts to ramp up offshore wind development as a key component of its climate change strategy.
Legal Challenges and Market Trends
The Trump administration previously faced legal challenges to its attempts to halt offshore wind construction, with federal judges repeatedly overturning those orders. Despite these setbacks, the administration has pursued alternative methods to impede the growth of the offshore wind industry.
Globally, the offshore wind market continues to expand, with China leading in new installations. However, the U.S. Has lagged behind in development, facing regulatory hurdles and political opposition.
Recent Developments
Despite the agreement with TotalEnergies, the Coastal Virginia Offshore Wind project began delivering power to the grid on Monday, March 23, 2026, marking a milestone for Dominion Energy.
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Daly reported from Washington. Associated Press writers Anthony Izaguirre in Albany, New York and Gary Robertson in Raleigh, North Carolina contributed to this report.
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