Trump Admin Paying $3.9B To Stop Construction of Wind Farms

Apr 16

NEWS & RESEARCH

The Trump administration has now cancelled 12 offshore wind deals at a cost of $3.9 billion to taxpayers. In the latest cancellation, announced on August 6, 2026, the administration agreed to pay RWE, a German company, $1.22 billion to abandon plans to build wind farms off the coasts of New York, California and Louisiana. Instead of building clean energy capacity, RWE will invest in natural gas projects in the US. Previously, the administration paid the French firm TotalEnergies nearly $1 billion to forfeit its East Coast offshore wind leases. In exchange, TotalEnergies agreed to pivot to U.S. fossil fuel projects, including increased Gulf of Mexico oil production and new gas-burning power plants for data centers. In addition, the administration agreed to pay Bluepoint Wind and Golden State Wind $885 million to abandon two offshore winds farms. While Trump tries to shutter wind power, his administration has issued orders to keep five aging coal plants open past their scheduled closures, citing an “energy emergency” threatening the reliability of the US electricity supply.

SOURCES: New York Times | CSIS | New York Times | New York Times | New York Times

ANALYSIS & OPINION

Critics call the deal to close the wind projects an "extraordinary transfer of taxpayer dollars" to boost fossil fuels. The Center for Strategic and International Studies (CSIS) warns the move creates market uncertainty by bypassing clear statutory frameworks. Evergreen Action’s Lena Moffitt told NPR that the administration is "paying [companies] to walk away" after failing in court. Additionally, the governors of New York and North Carolina have condemned the cancellation of their states' energy projects. Critics say its use of emergency orders is not an efficient, economical or environmentally friendly way to meet rising electricity demand and ensure the grid is not overwhelmed during peak hours. As for ordering the aging coal plants to continue operating, Earthjustice charges that “massive costs being imposed on ratepayers to keep around these old, expensive, dirty coal plants.”

HOW TO FIX IT

Congressional action:

Restore Clean Energy Incentives: Congres should reinstate tax credits for wind and solar and strip the $18 billion in new incentives for coal, oil, and gas.
Pass the Energy Bills Relief Act: A measure to restore revoked renewable funds and protect consumers from rising electricity costs.
Investigate the Deal: Congress should demand full transparency and documentation of the RWE, TotalEnergies and other cancellations.

State action:

Support state bodies, including the California Energy Commission, that have issued investigative subpoenas to participating developers to scrutinize the terms behind the lease liquidations.
Support state pension funds with stakes in involved energy companies that are launching formal inquiries into whether these corporate exits breach fiduciary duties to investors.

Litigation:

Support suits by state attorneys general (including New York and California) against the Trump administration arguing the buyouts of TotalEnergies SE and RWE are illegal "sham deals” that rely on specific federal coffers—such as the Judgment Fund—to execute non-compulsory lease cancellations under pre-textual national security claims.
Support shareholder initiatives by clean energy advocates and institutional investors who are raising challenges at corporate annual meetings to oppose energy companies accepting federal payouts to pivot toward fossil fuels.

Legislation: H.R.7977 - Energy Bills Relief Act