NewsPBS NewsHourMay 4, 2026United States
Trump Administration Pays Nearly $2 Billion to Cancel Offshore Wind Projects
The Trump administration has issued nearly $2 billion in payments to energy companies to abandon offshore wind projects off the coasts of New York, New Jersey, North Carolina, and California. These payments have sparked concerns from lawmakers and former officials regarding the legality and transparency of the spending.
Read the full story at PBS NewsHourWhy It Matters
The federal government is using approximately $2 billion in taxpayer funds to terminate existing offshore wind energy s, raising questions about the administration's legal authority to issue these refunds.
Key Facts
- The Trump administration has authorized nearly $2 billion in payments to energy companies to cancel offshore wind projects.
- TotalEnergies received a nearly $1 billion payout in March 2025 to abandon projects off the coasts of North Carolina and New York.
- The North Carolina lease was originally purchased for over $133 million in 2022.
- The New York lease was originally purchased for $795 million in 2022.
- An additional $900 million in payouts was issued for the Bluepoint Wind and Golden State Wind projects.
- The administration previously attempted to block these projects citing national security, but those efforts were unsuccessful in court.
- Interior Secretary Doug Burgum stated the projects were only viable due to taxpayer subsidies provided under the Biden administration.
- Former Bureau of Ocean Energy Management Director Liz Klein alleges the administration lacks the statutory or regulatory authority to refund these lease payments.
Who's Mentioned
organizationGolden State Wind“An offshore wind project off the coast of California.”personLiz Klein“Former Director of the Bureau of Ocean Energy Management under the Biden adminis”organizationTrump administration“The executive branch administration currently authorizing the payments.”organizationBluepoint Wind“An offshore wind project off the coast of New York and New Jersey.”personDoug Burgum“Interior Secretary who stated these projects were only viable under previous tax”organizationBureau of Ocean Energy Management“The federal agency responsible for managing offshore energy leases.”organizationTotalEnergies“A French energy company that received a nearly $1 billion payout to abandon wind”