Key facts
- Seven U.S. states are suing the Trump administration over the cancellation of an offshore wind lease.
- The U.S. Department of the Interior canceled a lease held by a subsidiary of TotalEnergies.
- TotalEnergies received a $795 million reimbursement and pledged not to develop new U.S. offshore wind projects.
- States allege the administration failed to follow proper administrative processes and misused a government fund.
- The canceled project was projected to power over 1.3 million homes.
Seven U.S. states, led by New York, have filed a lawsuit in a Washington, D.C. federal court against the Trump administration and TotalEnergies. The legal action contests a March 23 decision by the U.S. Department of the Interior to cancel an offshore wind lease held by a subsidiary of TotalEnergies. The lawsuit also challenges the $795 million reimbursement provided to the company and a subsequent pledge from TotalEnergies not to pursue new offshore wind development in the United States. The states involved include New Jersey, Connecticut, Maine, Massachusetts, Rhode Island, and Vermont. Governor Kathy Hochul stated the agreement was an "outrageous abuse of taxpayer dollars" that hinders energy needs and job creation while promoting oil and gas drilling over renewable energy. The administration's move is seen as part of an effort to stop U.S. offshore wind projects, favoring fossil fuel production. The project would have powered more than 1.3 million homes in New York and New Jersey. The states allege the administration failed to follow proper administrative processes and misused a government fund reserved for legal settlements even though there was no litigation between the parties. An Interior Department spokesperson stated the agreement was voluntary and went through appropriate procedural channels, calling the lease negotiations "blatantly unlawful."