Seven U.S. states, led by New York, have filed a lawsuit against the Trump administration’s agreement with TotalEnergies, which cancels the company’s offshore wind lease near New York in return for reimbursement and a commitment to invest in U.S. fossil fuel projects.
On June 2, New York Governor Kathy Hochul and Attorney General Letitia James announced that New York is leading a coalition with Connecticut, Maine, Massachusetts, New Jersey, Rhode Island, and Vermont to sue the federal government over the March 2026 deal involving TotalEnergies and its subsidiary Attentive Energy.
“This pay-not-to-play scheme pressuring a foreign company to abandon planned offshore wind projects in favor of gas and oil drilling is an outrageous misuse of taxpayer dollars that impedes our energy needs, job creation, and American energy independence,” Governor Hochul stated.
“Attorney General James and I will continue to combat Donald Trump’s hostility toward offshore wind, including his misuse of presidential power to compel companies like TotalEnergies to comply with his agenda.”
The agreement, reached in March, involves the U.S. Department of the Interior (DOI) canceling two offshore wind leases and reimbursing TotalEnergies through the federal Judgment Fund. In return, the company committed to invest in oil and gas projects in Texas and agreed not to pursue new offshore wind projects in the U.S.
The deal affects Attentive Energy lease areas in the New York Bight, which were to host the Attentive Energy One project for New York and Attentive Energy Two for New Jersey, along with a lease area in Carolina Long Bay. TotalEnergies is set to receive a USD 928 million reimbursement, including the Attentive Energy payment of USD 795 million and the Carolina Long Bay payment of USD 133.3 million.
The New York Governor’s office stated the Attentive Energy One offshore wind project was anticipated to power more than 700,000 homes, create over 1,700 jobs in New York, and provide direct electricity to New York City. The project could have generated USD 25.6 billion in economic benefits, including an estimated USD 10 billion in electricity bill savings.
The coalition claims the DOI unlawfully canceled the leases without following the Outer Continental Shelf Lands Act procedures, which mandate a hearing and findings that continued lease activity could cause serious harm. The lawsuit also argues the reimbursement violates the Judgment Fund Act as no imminent litigation justified the settlement.
The states emphasize the importance of offshore wind in their electricity and climate strategies, as power demand is expected to rise significantly in the coming years.
Industry organization Oceantic Network also responded to the lawsuit. “Offshore wind has faced unprecedented political interference despite billions in private investment and state commitments,” stated Liz Burdock, President and CEO of Oceantic Network.
The organization noted that canceling a 1 GW offshore wind project could eliminate USD 8.5 billion to USD 9.5 billion in U.S. economic output.
The lawsuit against the Trump administration, led by New York, follows scrutiny of the federal government’s offshore wind lease cancellations. After TotalEnergies, similar deals were made with Ocean Winds-led joint ventures, and reports indicate RWE may be considering a similar arrangement.
A U.S. offshore wind industry source told offshoreWIND.biz that “these agreements are not yet final and may not be legal.”
Original Story at www.offshorewind.biz