The Trump administration has agreed to pay a French energy company nearly $1 billion to cancel plans for two offshore wind farms that would have generated enough electricity to power over one million homes and businesses across New York and New Jersey.
Under the agreement announced Monday, TotalEnergies would forfeit its federal leases for offshore wind development off the East and North Carolina coasts in exchange for $928 million in taxpayer reimbursement, according to the New York Times.
The company would then redirect that investment toward oil and natural gas projects in Texas and elsewhere—including liquefied natural gas exports.
What New Jersey Is Losing
New Jersey and New York stand to lose a major source of clean energy.
The larger of the two projects, known as Attentive Energy, would have operated 54 miles south of Jones Beach, New York. The wind farm was expected to generate enough electricity to power more than one million homes and businesses across the two states—each of which are currently undergoing spiking electricity bills due to a strained power grid.
The second project, Carolina Long Bay, would have operated off North Carolina’s coast and could have powered approximately 300,000 additional homes and businesses by 2030.
For New Jersey, the cancellations represent a major setback in the state’s commitment to its ambitious clean energy goals. And it’s not just clean energy and lowered bills that the Garden State has to lose—the offshore wind projects would have provided jobs in manufacturing, installation, and maintenance.
Now, new jobs and wind energy are off the table. At least for now.
The Cost and Controversy
The agreement raises significant questions about the use of federal funds.
The nearly $1 billion reimbursement would likely come from the Justice Department’s Judgment Fund—taxpayer money typically reserved for court settlements. The use of these funds to subsidize fossil fuel development instead of renewable energy represents an extraordinary—and potentially unlawful—transfer of public money to a private corporation.
TotalEnergies, who paid for the leases during the Biden administration, defended the cancellation as a business decision, claiming offshore wind had become economically uncompetitive without federal subsidies.
New Jersey and the White House at Odds
Under Governor Murphy and Governor Sherrill, New Jersey has consistently advocated for offshore wind development.
The cancellations follow months of Trump administration efforts to block East Coast wind farm construction. In June, Atlantic Shores Offshore Wind canceled its New Jersey projects, citing lack of federal support.
For New Jersey, the deal represents a major setback in clean energy goals, loss of potential jobs, and yet another instance where the state becomes a target of the White House.