Seven U.S. States Sue Over TotalEnergies Deal to Abandon Offshore Wind

Seven northeastern U.S. states, all led by Democrats, have filed a lawsuit challenging a financial agreement between French oil and gas company TotalEnergies and the Trump administration. The deal, struck in March, involves the U.S. government reimbursing the energy giant nearly $1 billion to compensate for abandoning offshore wind projects it was set to develop on the U.S. Atlantic coast.

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After suffering several defeats in court, this administration concocted a sham deal to pay a foreign energy company hundreds of millions of taxpayer dollars to abandon offshore wind and invest in oil and gas instead.

New York Attorney General Letitia James, leading the coalition, denounced the agreement as a "sham deal" designed to pay a foreign energy company hundreds of millions of taxpayer dollars. She argued that the funds should not be used to encourage investment in oil and gas instead of offshore wind. Governor Kathy Hochul criticized the deal as a "scandalous waste of taxpayer money" that hinders energy needs, job creation, and American energy independence while also impeding emissions reduction efforts.

TotalEnergies had secured two offshore wind project leases in 2022 for $928 million. The company paused these projects after Donald Trump's election victory, as he is known for his skepticism of climate change and strong opposition to wind turbines. TotalEnergies CEO Patrick Pouyanné had previously stated in March that the company chose a "pragmatic" approach by negotiating with the executive branch, unlike other European firms like Orsted and Equinor, which pursued legal action.

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a scandalous waste of taxpayer money that prevents us from meeting our energy needs, creating good-paying jobs, and helping to ensure American energy independence while reducing emissions.

The agreement stipulates that TotalEnergies will receive the funds after proving it has invested the same amount in "conventional" energy sources, including oil and gas, in the U.S. between November 2025 and September 2026. The states argue the deal is "manifestly illegal" and are seeking its annulment.

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pragmatic