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Seven states sued the Trump administration Tuesday over its ~$1 billion deal with TotalEnergies to cancel offshore wind projects, challenging what state attorneys general argue is an unlawful termination of the company’s lease agreements.
Quick Facts
- Seven states filed suit: New York, Connecticut, Maine, Massachusetts, New Jersey, Rhode Island, and Vermont
- Deal amount: The Trump administration agreed to pay nearly $1 billion to TotalEnergies to exit offshore wind leases
- Projects affected: Offshore wind lease areas off the coasts of New York and North Carolina
- Lease date: TotalEnergies originally secured the Attentive Energy lease for $795 million in 2022
The Deal and the Challenge
In March 2026, the Trump administration announced a settlement agreement with TotalEnergies to terminate the French energy company’s offshore wind development leases. Under the deal, the U.S. Department of the Interior agreed to pay the company nearly $1 billion—the value of its renounced leases—in exchange for abandoning the projects. TotalEnergies committed to redirect that capital into oil, natural gas, and liquefied natural gas production in the United States.
The lawsuit, filed June 2, 2026, argues the agreement violates federal law. State attorneys general contend that the Trump administration lacked authority to unilaterally terminate valid lease contracts and compensate the company without congressional approval or a proper legal justification. The complaint seeks to reverse the termination and preserve the wind projects.
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What the Lease Agreements Covered
TotalEnergies held development rights for two major offshore areas. The Attentive Energy lease covered an 84,000-acre area off the New York and New Jersey coasts, originally secured for $795 million in 2022. The second lease, the Carolina Long Bay area off North Carolina, was awarded in May 2022 for $160 million. Together, these leases represented some of the largest offshore wind development opportunities on the U.S. East Coast.
By canceling the leases, the Trump administration effectively removed TotalEnergies from the U.S. offshore wind market. The company pledged not to develop any new offshore wind projects in the country and instead to focus on fossil fuel and LNG investments in Texas and the Gulf of Mexico.
Why the States Object
Democratic-led states argue the deal undermines renewable energy policy and sets a concerning precedent. The lawsuit asserts that the administration cannot simply buy out private companies’ legally binding leases to advance policy preferences—particularly when doing so redirects investment away from clean energy. The case also raises constitutional questions about the executive branch’s authority to make such substantial financial commitments and substantive policy reversals without legislative authority.
Sources
- The Hill — lawsuit details, states involved, deal terms
- Courthouse News — filing date, lease acreage, and legal claims
- E&E News — seven-state challenge and agreement terms
- U.S. Department of Interior (DOI) — official settlement announcement and $1 billion commitment
- Reuters — deal structure and TotalEnergies’ investment redirection
- GCaptain Maritime Forum — Attentive Energy lease amount ($795M, 2022) and Carolina Long Bay ($160M, May 2022)
