The Trump administration has announced a $1 billion agreement to pay French energy giant TotalEnergies to abandon two major U.S. offshore wind leases.
Under the terms of the deal, the company will receive a reimbursement of its original lease fees for projects off the coasts of New York and North Carolina in exchange for a pledge to cease all domestic offshore wind development. The Department of the Interior confirmed on Monday that these funds would instead be redirected by TotalEnergies into fossil fuel infrastructure, specifically a liquefied natural gas plant in Texas and various oil and gas operations.
This move marks a significant shift in federal energy strategy as the administration intensifies its efforts to dismantle renewable energy initiatives in favour of traditional power sources. Interior Secretary Doug Burgum defended the expenditure, stating that the agreement ensures American taxpayers are no longer subsidising “unreliable” energy. Conversely, critics and environmental groups have condemned the payout as a “billion-dollar bribe” designed to bypass recent court rulings that had previously blocked the administration’s attempts to halt wind farm construction.
TotalEnergies CEO Patrick Pouyanné described the pivot to fossil fuels as a more efficient use of capital, noting that the company had already paused its American wind projects following the recent election. However, the decision has met fierce opposition from state leaders. New York Governor Kathy Hochul labelled the arrangement an “outrageous abuse of taxpayer dollars,” while North Carolina Governor Josh Stein criticised the administration for spending public money to prevent private investment in clean energy.
The domestic row unfolds as the global offshore wind market continues to expand, led predominantly by China. While the Trump administration cites national security and grid reliability as primary motives for the rollback, developers continue to challenge these interventions in court. Despite the federal pivot, some projects remain resilient; Dominion Energy confirmed on Monday that its Coastal Virginia Offshore Wind farm has officially begun delivering power to the grid.
