A coalition of attorneys general from New York, New Jersey, Connecticut, Maine, Massachusetts, Rhode Island, and Vermont has filed a federal lawsuit against the Trump administration’s plan to pay nearly $928 million to TotalEnergies in exchange for canceling two offshore wind leases off New York's coast.
This legal challenge claims the deal circumvents established law by using funds from the Treasury’s Judgment Fund, typically reserved for legal settlements, to compensate TotalEnergies. The states argue that the federal government bypassed required public processes, including hearings and coordination with governors, before withdrawing the leases. The agreement obligates TotalEnergies to invest an equivalent sum into U.S. oil and gas projects, prompting criticisms that it sacrifices clean energy progress for fossil fuel investments.
New York Attorney General Letitia James described the arrangement as a “sham deal” that risks eliminating thousands of union jobs and deprives millions of consumers of affordable, clean energy. The canceled wind projects were expected to support the region’s energy grid by replacing aging power plants, meeting growing electricity demand, and advancing climate commitments. Specifically, New Jersey’s Attentive Energy Two project was projected to generate 1.3 gigawatts—enough to power approximately 650,000 homes—and contribute an estimated $3.1 billion to the state’s economy.
Officials in New York have flagged potential risks to grid reliability as older plants near retirement. Removing offshore wind capacity could worsen these challenges, potentially increasing electricity costs and disrupting supply stability.
The Interior Department defended the decision, contending that the offshore wind leases in question were negotiated under questionable circumstances during the Biden administration. This defense reframes the lawsuit as a response to an allegedly flawed leasing process.
Clean energy advocates have supported the multistate action. Liz Burdock, president and CEO of the Oceantic Network, emphasized the importance of protecting jobs, investments, and the nation’s capacity to meet rising electricity needs through reliable and affordable clean energy sources.