Trump administration will pay a French company $1 billion in taxpayer funds to not build wind farms | CNN
The Trump administration announced it will pay French energy corporation TotalEnergies nearly $1 billion in taxpayer funds to abandon offshore wind farm development off the coasts of New York and North Carolina. The Justice Department will reimburse the company for federal leases purchased under the Biden administration, effectively blocking two projects that could have generated over 4 gigawatts of electricity. TotalEnergies CEO Patrick Pouyanné stated the company will instead invest the funds in a liquified natural gas plant in Texas and expand oil drilling operations in the Gulf of Mexico and shale projects across the United States.
This represents a shift in the Trump administration’s strategy to block renewable energy projects after failing to prevent construction of more established offshore wind operations. The Interior Department previously halted federal permit approvals for renewable energy initiatives, and this payment marks the first instance of the federal government directly paying companies to prevent wind farms from being built. Interior Secretary Doug Burgum claimed offshore wind is too expensive and unreliable, assertions contradicted by energy experts who note that wind projects operate under fixed power agreements with stable costs unlike fossil fuels.
The cancellation worsens an emerging electricity shortage affecting the United States, particularly in mid-Atlantic states where power demand from data centers and vehicle electrification is straining available capacity and driving prices upward. Elizabeth Klein, former director of the Interior Department’s Bureau of Ocean Energy Management, stated the scrapped New York project specifically would harm a region desperately needing new electricity sources, and called the administration’s decision nonsensical.
Industry representatives have condemned the payment as wasteful and counterproductive for consumers. Sam Salustro, senior vice policy official for the Oceantic Network offshore wind trade association, characterized the arrangement as political theater that removes affordable domestic energy while electricity costs soar. Multiple energy companies holding undeveloped offshore wind leases worth over $5 billion have publicly indicated they expect reimbursement if prevented from proceeding, including German renewables firm RWE, which paid $1.2 billion for three leases and stated it will pursue legal action if necessary to recover its investment.
The Interior Department has not disclosed whether additional reimbursement agreements are under negotiation with other developers. Klein criticized TotalEnergies for accepting the arrangement, noting that while the deal benefits the corporation, it constitutes a poor outcome for American taxpayers and national energy requirements.