The Trump administration is weighing a $1 billion payout to shutdown East Coast offshore windfarm projects. The administration is devising this new strategy in an aim to throttle the country’s offshore wind industry after its earlier plan flopped. Federal judges blocked its five previous attempts to stop wind farms under construction off the East Coast.

Senior administration officials are drafting settlement agreements that would pay nearly $1 billion to TotalEnergies. The French energy company is behind two wind farms off New York State and North Carolina. Under the terms of the proposed settlements, the Interior Department would cancel the leases in federal waters for the two projects.

These include the Attentive Energy and also Carolina Long Bay, as noted by the New York Times. On the other hand, the Justice Department would then pay more than $928 million to TotalEnergies, reimbursing the company for its winning bids in lease sales during the Biden administration.

In exchange, Total is expected to abandon its plans to commence construction of the wind farms. Instead, it will also commit investing in natural gas infrastructure in Texas, as the Trump administration prioritizes the production of fossil fuels over renewables like wind and solar power. The ramp up of windfarm projects in New York and New Jersey coasts joins earlier ones such as in Maryland.

Payout on East Coast Offshore Windfarm Projects as Trump’s Ace in the Sleeve

The proposed settlements highlight President Trump’s ace in the sleeve in disrupting East Coast offshore wind projects. Mr. Trump has disparaged offshore wind power since 2012, when he tried unsuccessfully to stop a wind farm visible from one of his golf courses in Scotland. He has often called the projects ugly and inefficient, and he has claimed without evidence that they are “driving whales crazy.” A spokeswoman for TotalEnergies, Solange Petit de Bantel, declined to comment on the matter. Representatives for the Interior Department and the Justice Department also did not respond to requests for comment.

It is unclear whether TotalEnergies will accept the proposed settlements. If the company refuses the offers, the Trump administration would still cancel the leases, the documents show, leading to costly litigation that both sides might be eager to avoid. Attentive Energy would sit in federal waters 54 miles south of Jones Beach, N.Y.

Once fully operational, it would produce enough electricity to power more than one million homes and businesses. The project was initially expected to begin generating electricity in the early 2030s. However, in November 2024, Patrick Pouyanné, the chief executive of TotalEnergies, said the company would “put the project on pause” with Mr. Trump’s election.

Attentive Energy is a joint venture between TotalEnergies and the developers Rise Light & Power and Corio Generation. However, TotalEnergies submitted the winning bid for the lease. Representatives for Rise Light & Power and Corio did not respond to requests for comment.

0 for 5 in the Fight Against Offshore Windfarm Developments

The Trump administration is now 0 for 5 in its efforts to stop wind farms under construction. Moreover, the settlements would be the first time that it targeted wind farms that have yet to begin construction but have won leases. Two of the offshore wind projects that the administration has tried to stop celebrated significant milestones on Friday. Revolution Wind, off the coast of Rhode Island, announced that it had begun delivering power to New England’s electric grid.

And Vineyard Wind, off the coast of Massachusetts, said that it had completed construction, with workers installing the last of 62 turbines. “It is quite unusual for the administration to do this cash outlay, seemingly just because Trump doesn’t like offshore wind,” said John Leshy, who served as the general counsel for the Interior Department during the Clinton administration.

Project Factsheet

• Initiative Name: Offshore Wind Lease Settlement Proposal
• Location: U.S. East Coast (off New York & North Carolina)
• Country: United States
• Estimated Value: $1 Billion payout
• Project Type: Government-led lease cancellation / energy policy intervention

Timeline

• 2024–2026: Multiple legal attempts to halt offshore wind projects blocked by federal judges.
• 2026: Settlement proposal drafted to cancel leases via compensation.
• Current Phase: Negotiation and potential settlement discussions.

Key Projects Affected

• Attentive Energy (off New York).
• Carolina Long Bay (off North Carolina).

Project Teams

Project Owner / Developer

• TotalEnergies – Leaseholder and primary developer.

Joint Venture Partners (Attentive Energy)

• Rise Light & Power – Project partner.
• Corio Generation – Project partner.

Government Authorities

• U.S. Department of the Interior – Responsible for lease cancellations.
• U.S. Department of Justice – Responsible for financial settlement payments.

Financial Structure

• Proposed Payout: Over $928 million to TotalEnergies.
• Purpose: Reimburse lease acquisition costs from prior federal auctions.
• Condition: Developer agrees to abandon offshore wind development.

Infrastructure Scope (Cancelled)

• Offshore wind farms in federal waters.
• Attentive Energy capacity: Power for 1+ million homes (planned).
• Planned Operation: Early 2030s (now uncertain).

Strategic Objectives

• Halt expansion of offshore wind projects.
• Shift focus toward fossil fuel development.
• Encourage investment in natural gas infrastructure (e.g., Texas).
• Avoid prolonged legal battles through settlement.

Policy Context

• The administration has made 5 unsuccessful legal attempts to stop wind projects.
• Courts have consistently ruled against federal intervention.
• Marks first attempt to cancel pre-construction leased projects via payout.

Risks & Uncertainty

• Acceptance by TotalEnergies remains unclear.
• Potential litigation if settlement is rejected.
• Political and regulatory uncertainty affecting U.S. renewable sector.

Current Status

• Settlement proposal under consideration.
• No formal agreement reached.
• Offshore wind projects remain in limbo pending outcome.