Trump Refunds Offshore Wind Lease Payments to Shift Investment to Reliable Energy

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The U.S. Department of the Interior reached a settlement with French energy company TotalEnergies, refunding $928 million in offshore wind lease payments in exchange for the company canceling two wind farm projects off the East Coast and agreeing not to pursue any new offshore wind projects in the United States. The Trump administration framed this as a win-win, allowing TotalEnergies to redirect that capital into more profitable American oil, natural gas, and LNG projects instead of expensive, unreliable offshore wind power.

Why it matters

This deal highlights the economic realities of offshore wind power, which is significantly more costly than natural gas-fired electricity. By refunding the lease payments and canceling the projects, the Trump administration is protecting American consumers from higher electricity rates and grid instability that can result from relying too heavily on intermittent renewable sources like offshore wind.

The details

In March 2026, the Department of the Interior reached a settlement with TotalEnergies, refunding the $928 million the company had paid in 2022 to win offshore wind leases off the coasts of New York/New Jersey and North Carolina. In exchange, TotalEnergies will cancel those two wind farm projects and agree not to pursue any new offshore wind developments in the U.S. The company will instead redirect that capital into American oil, natural gas, and LNG projects.

• In 2022, TotalEnergies won two offshore wind leases off the East Coast, paying $928 million.
• On March 23, 2026, the Department of the Interior reached a settlement to refund the $928 million to TotalEnergies.

What’s next

The settlement will permanently remove the two offshore wind leases from consideration, signaling the end of the era of forcing expensive green energy mandates on American consumers.