Trump administration’s offshore wind buyouts approach $4 billion in costs

Since March, the Interior Department has settled claims with developers like Invenergy, Bluepoint Wind and TotalEnergies, returning hundreds of millions of dollars for offshore wind leases and then cancelling the agreements. In return, the companies pledged to invest the same amounts in gas and other energy projects, with the payouts drawn from a federal settlement fund. States such as California and a New York-led coalition disputed the legitimacy of the settlements, saying no actual claims existed.

The buyouts follow a series of actions by the Trump administration, including freezing permits, issuing stop-work orders and ending tax credits for wind projects. While three farms—South Fork, Vineyard Wind 1 and Revolution Wind—were completed, others remain delayed, and BloombergNEF cut its 2035 offshore wind forecast dramatically. Interior Secretary Doug Burgum and Energy Secretary Chris Wright argued the projects required massive taxpayer subsidies and were unreliable, prompting the costly buyouts.