Trump Administration Pays $900 Million to Cancel Offshore Wind Leases

On Monday the Interior Department announced the termination of Bluepoint Wind (off New Jersey/New York) and Golden State Wind (floating off California). The companies will receive about $900 million—$765 million for Bluepoint’s lease and up to $120 million for Golden State’s lease fees. The projects, owned by Ocean Winds, were slated to generate 2–2.4 GW, enough for over one million homes each.

Associated Press

Biden’s 2022 offshore wind lease auction granted the projects with subsidies. Trump’s 2023 executive order to block offshore wind was vacated by a federal judge after 17 states and D.C. sued. The Interior pursued back-door settlements, including a $1 billion payout to TotalEnergies.

Associated Press

Interior Secretary Doug Burgum oversaw the deals. Ocean Winds, a 50 % joint venture of ENGIE and EDP Renewables, co-owns the projects. Global Infrastructure Partners (GIP), a BlackRock-linked fund, must invest $765 million in a U.S. LNG plant; Golden State’s CPPIB partner can recoup up to $120 million if it matches the investment in oil, gas or Gulf-Coast infrastructure.

The Hill

Secretary Burgum said the projects were sold only because of massive taxpayer subsidies and ending them stops Americans paying for expensive, unreliable, intermittent energy. The Interior cited national-security concerns.

The Guardian

Senate Minority Leader Chuck Schumer called the move reckless, warning it will raise electricity prices. Representatives Jared Huffman and Jamie Raskin demanded a legal basis, calling the deal outrageous. Oceanic Network’s Sam Salustro warned the administration is using taxpayer dollars to buy foreign companies out of legally executed leases, with staggering consumer costs.

The Guardian

The administration cites national-security risks, yet the Defense Department gave no comment. Courts have repeatedly rejected Trump’s bans, but the legality of the reimbursements remains contested; no impact on electricity rates quantified.

The Guardian

The Interior says future offshore wind will require fresh lease auctions, resetting the market. Analysts expect more legal challenges while subsidies shift toward LNG and fossil projects.

The Hill

• “Once again, Donald Trump is attacking New York offshore wind at the behest of his fossil fuel donors with no justification,” — Chuck Schumer, Senate Minority Leader (D-NY)

Associated Press

• “Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure.” — Doug Burgum, Secretary of the Interior

The Hill

• “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners and shareholders,” — Michael Brown, CEO, Ocean Winds North America

Associated Press

• “Unable to defend its offshore wind actions in court, the administration is using taxpayer dollars to buy foreign companies out of legally executed offshore wind leases,” — Sam Salustro, Senior Vice-President, Oceanic Network

The Guardian

• “We demand answers about the legal basis for this closed-door deal to pay energy companies not to provide affordable, clean, renewable energy to American families,” — Jared Huffman and Jamie Raskin, U.S. Representatives

The Guardian