Trump Admin Pays $1B to Stop East Coast Wind Farms

Funds redirected to oil and gas projects, citing national security concerns.

Mar. 24, 2026 at 10:30pm

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The Trump administration reached a $1 billion settlement with French energy firm TotalEnergies to stop the development of two offshore wind farms off the coasts of New York and North Carolina. TotalEnergies agreed to return its offshore wind leases and will not develop any new offshore wind projects in the U.S. The funds will instead be redirected to oil and natural gas projects, including a liquefied natural gas facility in Texas.

Why it matters

This move represents a shift in the Trump administration's energy policy, prioritizing fossil fuel development over renewable energy sources like offshore wind. The decision to halt these wind farm projects, citing national security concerns, raises questions about the administration's commitment to diversifying the country's energy mix and reducing reliance on imported oil and gas.

The details

Under the settlement agreement, TotalEnergies will be paid $1 billion to return its two offshore wind leases to the federal government. The company had bid for the leases under the Biden administration, but the Trump administration has now intervened, citing national security concerns as the reason for halting the offshore wind projects. TotalEnergies will instead invest the funds in a liquefied natural gas facility in Texas, shale gas production, and oil drilling.

  • The Trump administration reached the $1 billion settlement with TotalEnergies in March 2026.
  • TotalEnergies had bid for the offshore wind leases under the Biden administration.

The players

Trump administration

The federal government under the leadership of former President Donald Trump.

TotalEnergies

A French energy firm that had planned to develop two offshore wind farms off the coasts of New York and North Carolina.

Interior Department

The federal agency that oversees energy development on public lands and waters, including offshore wind projects.

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What they’re saying

“We're partnering with TotalEnergies to unleash nearly $1 billion that was tied up in a lease deposit directed towards the prior administration's subsidies that were pushing expensive, weather dependent offshore wind.”

— Doug Burgum, Interior Secretary

“I will not argue with secretary about national security concerns. It's not our job. It's not up to us to argue with the state.”

— Patrick Pouyanné, Chairman and CEO, TotalEnergies

What’s next

The Interior Department has also issued stop-work orders for the five fully permitted offshore wind projects already being built, although all won court injunctions earlier this year to allow construction to go forward.

The takeaway

This decision by the Trump administration represents a significant shift in energy policy, prioritizing fossil fuel development over renewable energy sources like offshore wind. The move raises concerns about the administration's commitment to diversifying the country's energy mix and reducing reliance on imported oil and gas, as well as the potential impact on the growing offshore wind industry in the United States.