Six states including New York and Connecticut have launched a legal challenge against the Trump administration’s agreement to terminate a major offshore wind project developed by TotalEnergies. The lawsuit targets a deal that reimburses the French energy company with a payout estimated at $1 billion, on the condition that the funds are redirected toward fossil fuel projects rather than renewable energy.

New York’s attorney general argues that the settlement threatens critical regional energy infrastructure, thousands of union jobs, and efforts to expand clean and affordable power. Connecticut’s attorney general described the deal as a costly setback for families and businesses already burdened by high energy prices, emphasizing the urgent need for new clean energy sources. Both expressed concern that the administration’s actions will stall progress on climate goals by undermining offshore wind development.

The dispute centers on a lease cancellation off the New York coast, the larger of two offshore projects covered by the agreement, which also involves leases near North Carolina. The coalition of states—Connecticut, Maine, Massachusetts, New Jersey, Rhode Island, Vermont, and New York—contends that proper legal procedures weren’t followed in terminating the leases. They are now asking a federal court to overturn the cancellation and settlement tied to TotalEnergies’ subsidiary, Attentive Energy.

New York’s governor has also vowed to continue resisting what she describes as the Trump administration’s persistent opposition to offshore wind. President Trump has publicly expressed strong disdain for wind energy, citing a desire to prevent new windmills from being built in the United States.

In a related development, renewable energy organizations filed a separate complaint in Oregon against Pentagon officials, accusing them of failing to complete national security reviews for onshore wind projects on private land. This holdup is said to have effectively paused all new wind development onshore. The Department of Defense maintains that the review process is ongoing but complex.

The Interior Department has yet to issue a comment on the New York-led lawsuit and the broader controversies surrounding wind energy project approvals.