New York Attorney General Letitia James has filed a lawsuit against the Trump administration over a controversial settlement with French energy giant TotalEnergies. The deal, which returns $1 billion to the company, effectively ends its offshore wind projects off the coasts of New York and North Carolina. Six other Northeastern states—Connecticut, Maine, Massachusetts, New Jersey, Rhode Island, and Vermont—have joined the legal challenge.
Deal Sparks Backlash
The agreement, made public in March, requires TotalEnergies to invest the refunded funds in fossil fuel projects instead of renewable energy. According to the lawsuit, the lease cancellation jeopardizes over a thousand union jobs and eliminates potential savings of $10 billion for New York ratepayers, including $500 million in targeted assistance for low-income households.
“This administration cooked up 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,” stated Attorney General James. “We are fighting back to stop this illegal agreement.”
Economic and Environmental Impact
The offshore wind project, slated to generate 3 gigawatts of clean energy, would have powered nearly one million homes. Gov. Kathy Hochul echoed James’ concerns, accusing the Trump administration of “overt and never-ending hostility toward offshore wind.” The lawsuit alleges that Interior Secretary Doug Burgum and other officials failed to follow proper procedures in canceling the lease.
Burgum defended the settlement during a House Natural Resources Committee hearing last month, stating that TotalEnergies was merely refunded its lease payments, which were reinvested in U.S. energy projects. However, critics argue the deal prioritizes foreign oil interests over domestic renewable energy development.
The Trump administration has allocated nearly $2 billion to persuade energy companies to abandon offshore wind projects, following failed attempts to halt such developments through executive action. Democrats in Congress are investigating the TotalEnergies agreement, while California probes a similar deal involving Golden State Wind.