The Trump administration has dismantled two major offshore wind projects this week, striking deals worth more than $1 billion to compensate developers and redirect their investments toward oil and gas infrastructure instead.
The move represents a dramatic pivot away from renewable energy expansion. Under the new agreements, Global Infrastructure Partners (a BlackRock subsidiary) will invest up to $765 million into a liquefied natural gas facility, while Golden State Wind can recover lease fees totaling as much as $120 million if those funds flow toward oil and gas assets on the Gulf Coast. Both companies have committed not to pursue additional offshore wind projects in the US.
Interior Secretary Doug Burgum framed the cancellations as a win for taxpayers and energy reliability. "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," he said in a statement accompanying the Interior Department announcement.
The administration justified the buyouts by invoking energy security, particularly citing strains on power supplies from rising AI datacenter demand and escalating global energy costs. The Department of the Interior said the canceled agreements promoted "US energy security and affordability" by steering investment "away from intermittent, higher-cost energy sources toward proven conventional solutions."
Blocked from defending its position in court, the administration chose to negotiate directly with investors rather than risk judicial defeat. A federal judge had already ruled against Trump earlier this year, allowing five East Coast wind farms to proceed despite the president's opposition. The buyout strategy sidesteps the courthouse entirely.
What's Lost in the Deal
The California project alone would have generated 2 gigawatts of offshore wind capacity, sufficient to power approximately 1.1 million homes. A separate New Jersey and New York offshore project would have delivered 2.4 gigawatts. A third initiative that the administration bought out last month for $1 billion would have produced enough electricity for 1.2 million households.
Sam Salustro, senior vice president of the pro-offshore wind advocacy group Oceanic Network, criticized the arrangement as fiscally reckless. "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," Salustro said. "Costs to consumers' pocketbooks are staggering."
The Interior Department declined to elaborate on national security concerns it cited in justifying the cancellations. Trump has previously claimed that wind turbines create radar interference harmful to military operations, though he has also been outspoken about aesthetic objections to wind farms. In March, during a tech industry meeting, he called wind energy "worthless" and stated flatly: "We don't do wind in this because it's a loser."
Years before his political career, Trump campaigned against 11 turbines proposed near his Scottish golf course, arguing they would damage tourism. Those turbines now generate power for roughly 80,000 homes.
Democratic Representatives Jared Huffman and Jamie Raskin have challenged the legality of the administration's approach. In a letter to Burgum and acting Attorney General Todd Blanche, they demanded accountability and labeled the agreement "outrageous" and "unlawful." "President Trump has been relentless in his attacks on affordable, clean energy," the lawmakers wrote. "This backdoor deal to cancel these projects will undeniably have negative economic, environmental, and national security impacts for which this administration must answer."
Author James Rodriguez: "Paying billions to kill renewables while courting oil and gas isn't energy policy, it's a loyalty reward dressed up as fiscal responsibility."
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