New York Sues Federal Government Over Canceled Wind Project, Citing Job and Energy Risks

New York is taking legal action against the federal government, challenging the cancellation of a significant offshore wind project. Governor Kathy Hochul and Attorney General Letitia James announced a lawsuit seeking to overturn a March 2026 agreement between the Department of the Interior (DOI) and French company TotalEnergies. The agreement reportedly involves a $795 million reimbursement to the company in exchange for abandoning its U.S. offshore wind plans and redirecting investments toward oil and gas development.

State authorities argue that this decision poses a substantial risk to key investments, the region's energy development, and over 1,700 jobs planned for New York. The lawsuit, joined by other states, contends that the Trump administration used public funds to facilitate a deal that favors fossil fuel investments over renewable energy projects. Governor Hochul condemned the arrangement as an "outrageous abuse of taxpayer dollars," criticizing the pressure exerted on a foreign company to abandon wind projects in favor of oil and gas drilling.

For New York, the decision not only jeopardizes the Attentive Energy project but also undermines the state's broader energy strategy aimed at meeting its significant electricity demand. Attorney General James highlighted that the move threatens unionized jobs and discourages new investments in renewable energy. She stated, "We are fighting to stop this illegal deal that threatens to erase more than 1,000 union jobs and deprive millions of New Yorkers of clean, accessible energy."

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This scheme of paying to not compete, pressuring a foreign company to give up planned offshore wind projects in the US in favor of gas and oil drilling, is an outrageous abuse of taxpayer dollars.

The dispute centers on a lease area acquired in 2022 by Attentive Energy, a subsidiary of TotalEnergies, located approximately 47 miles off the coast of New York. Had the project proceeded as planned, it was expected to supply electricity to over 700,000 homes, representing a major offshore wind initiative for the state. State prosecutors estimate the initiative would have generated significant economic activity and employment.

The lawsuit, led by a coalition of seven states, asserts that the DOI failed to follow legally mandated procedures for canceling offshore wind leases. New York and the other participating states are seeking to invalidate the agreement, arguing it was improperly executed and detrimental to clean energy goals and economic development.

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We are fighting to stop this illegal deal that threatens to erase more than 1,000 union jobs and deprive millions of New Yorkers of clean, accessible energy.