A coalition of seven U.S. states has launched a legal battle against the Trump administration and French energy giant TotalEnergies, contesting a controversial agreement that dismantled a major offshore wind project planned off the coast of New York.
Filed in federal court in Washington, the lawsuit targets a March agreement brokered by the U.S. Department of the Interior that terminated a valuable offshore wind lease held by a TotalEnergies subsidiary. Under the arrangement, the federal government agreed to provide nearly $795 million to the company while securing a commitment that it would not pursue additional offshore wind developments in the United States.
The agreement also included a pledge by TotalEnergies to direct close to $1 billion toward a liquefied natural gas facility in Texas and expand investments in domestic oil and gas production.
The dispute reflects a broader effort by President Donald Trump’s administration to halt offshore wind expansion across the country. Trump has repeatedly criticized offshore wind projects, arguing they are costly and visually intrusive, while promoting increased fossil fuel production as a cornerstone of U.S. energy policy.
According to the states’ complaint, federal officials bypassed required administrative procedures and improperly relied on a government fund intended for legal settlements despite the absence of any active litigation between the government and the company.
Federal officials defended the arrangement, describing it as a voluntary agreement that followed appropriate procedures. Interior Department representatives also argued that offshore wind leases approved during the previous administration imposed significant costs on taxpayers while supporting energy projects they view as unreliable and expensive.
At the center of the dispute is the proposed Attentive Energy project, an offshore wind development that the plaintiff states say could have generated enough electricity to power roughly 1.3 million homes across New York and New Jersey. Both states consider offshore wind a key element of their long-term plans to meet rising electricity demand while cutting greenhouse gas emissions.
Joining New York in the lawsuit are New Jersey, Connecticut, Maine, Massachusetts, Rhode Island and Vermont.
New York Governor Kathy Hochul sharply criticized the agreement, describing it as an abuse of public funds that undermines clean-energy goals, threatens future job creation, and weakens efforts to strengthen domestic energy security while lowering emissions.
The case is expected to become a closely watched test of the administration’s authority to reshape U.S. energy policy and redirect investment away from renewable projects toward traditional fossil fuel development.
