Trump’s $1B deal sinking offshore wind draws legal scrutiny

By Niina H. Farah | 04/21/2026 07:11 AM EDT

Can the Interior Department voluntarily refund lease payments? Some legal experts say no, but it’s unclear who could sue.

Wind turbines generate electricity at the Block Island Wind Farm.

Offshore wind turbines near Block Island, Rhode Island. John Moore/AFP via Getty Images

The Trump administration’s deal with TotalEnergies to nix two East Coast offshore wind projects is drawing criticism from some legal experts and Democratic lawmakers who say the payout is likely illegal.

The Interior Department last month agreed to pay back the French energy company the nearly $1 billion it spent on leases for its New York Bight and Carolina Long Bay projects.

Interior Secretary Doug Burgum has called the deal a win for energy affordability, as he panned offshore wind as expensive and unreliable.

Advertisement

But the possible pathways for Interior to reach an agreement with Total don’t allow the department to voluntarily reimburse the company, said Elizabeth Klein, who led Interior’s Bureau of Ocean Energy Management under the Biden administration.

GET FULL ACCESS