Trump Administration Pays $1B to Halt Wind Farm Construction

The deal with TotalEnergies ends plans for offshore wind projects in New York and North Carolina.

Mar. 24, 2026 at 5:55am

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The Trump administration has reached a $928 million deal with the French energy company TotalEnergies to halt the construction of offshore wind farms off the coasts of New York and North Carolina. In exchange, TotalEnergies will invest the same amount in oil, natural gas, and liquefied natural gas production in the United States and will not develop any new offshore wind projects in the country due to 'national security concerns'.

Why it matters

The move represents the Trump administration's continued efforts to prioritize fossil fuel production over renewable energy development, despite the growing demand for clean power. This deal could have significant implications for the future of offshore wind in the U.S. and the country's transition to a more sustainable energy mix.

The details

Under the agreement, TotalEnergies will relinquish its leases for the Carolina Long Bay and New York Bight offshore wind projects, which were awarded by the Biden administration in 2022. The company cited studies showing that offshore wind development in the U.S. is more costly and could increase energy costs for consumers, unlike in Europe. The deal comes as the Trump administration has made a series of moves over the last year to eliminate wind farms and redirect energy investment toward fossil fuel production.

  • The deal was announced on March 23, 2026.
  • The Carolina Long Bay and New York Bight offshore wind projects were awarded to TotalEnergies in 2022.

The players

TotalEnergies

A French energy company that was awarded leases for offshore wind projects in the U.S. but has now agreed to relinquish those leases and invest in oil, natural gas, and liquefied natural gas production instead.

Doug Burgum

The U.S. Interior Secretary who announced the deal with TotalEnergies, stating that the 'era of taxpayers subsidizing unreliable, unaffordable and unsecure energy is officially over'.

Patrick Pouyanne

The CEO of TotalEnergies, who said the company made a 'pragmatic' business decision based on the Trump administration's energy policy.

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What they’re saying

“Offshore wind is one of the most expensive, unreliable, environmentally disruptive and subsidy-dependent schemes ever forced on American ratepayers and taxpayers.”

— Doug Burgum, U.S. Interior Secretary

“These investments will contribute to supplying Europe with much-needed LNG from the United States and provide gas for U.S. data center development.”

— Patrick Pouyanne, CEO of TotalEnergies

What’s next

The deal with TotalEnergies is expected to be finalized in the coming weeks, and the company will begin reinvesting the refunded offshore wind farm lease fees to finance construction of its Mt. Rio Grande LNG plant in Texas.

The takeaway

This deal represents a significant setback for the offshore wind industry in the U.S., as the Trump administration continues to prioritize fossil fuel production over renewable energy development. It remains to be seen how this decision will impact the country's long-term energy strategy and its ability to meet growing demands for clean power.