Trump Cancels Offshore Wind Funding, Sparks Lawsuits

Sep. 1, 2025, 6:51 pm ET

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30-Second Take

  • President Trump’s administration canceled $679 million in federal funding for offshore wind projects across 11 states
  • The move targets critical infrastructure including a $435 million floating wind terminal in California
  • Multiple states have launched legal challenges with a key court hearing set for September 4

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Quick Brief

2-Minute Digest

Essential Context

The Transportation Department canceled $679 million in federal funding for a dozen offshore wind projects on August 29, marking the administration’s latest move against renewable energy infrastructure. This decision follows a series of actions targeting wind energy projects approved under the previous President Trump’s administration.

Core Players

  • President Trump – Driving force behind fossil fuel prioritization
  • Transportation Secretary Sean Duffy – Announced the funding cancellation
  • Health and Human Services Secretary Robert F. Kennedy Jr. – Leading review of offshore wind projects
  • Connecticut Attorney General William Tong – Leading legal challenge against administration actions

Key Numbers

  • $679 million – Total funding canceled for offshore wind projects
  • 11 states – Number affected by funding cancellations
  • 1,000+ jobs – At immediate risk according to state officials
  • 12 projects – Number of offshore wind initiatives impacted

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The Catalyst

Transportation Secretary Sean Duffy announced the cancellation of $679 million in federal funding for offshore wind projects on August 29, targeting infrastructure critical to the industry’s development.

This action follows President Trump’s January 20 memorandum halting all federal approvals for wind projects on federal land, signaling a systematic dismantling of renewable energy initiatives.

Inside Forces

The administration has coordinated multiple agencies to review offshore wind projects approved by President Trump, with Health and Human Services Secretary Robert F. Kennedy Jr. leading the effort.

Recent stop-work orders on nearly completed projects, including Revolution Wind off Rhode Island, demonstrate the administration’s urgency in reversing renewable energy progress.

Power Dynamics

President Trump maintains firm control over energy policy, with Secretary Duffy executing decisions that align with the administration’s fossil fuel agenda.

State governors and attorneys general are mounting resistance, but face significant challenges against federal authority over offshore projects.

Outside Impact

Rhode Island Governor Dan McKee called the move “an attack on our jobs” and “an attack on our energy,” highlighting immediate economic consequences.

Connecticut Attorney General William Tong warned the cancellations “will jack up energy bills, hurt workers, and weaken our grid,” emphasizing broader energy security concerns.

Future Forces

Legal challenges are accelerating, with Connecticut and 18 other states preparing arguments for a September 4 court hearing on summary judgment.

The administration continues reviewing additional projects, potentially targeting the Vineyard Wind project off Massachusetts and other Atlantic coast facilities.

Industry analysts predict significant supply chain disruptions as manufacturers and logistics hubs lose critical funding.

Data Points

  • $435 million – Funding canceled for Humboldt County floating wind terminal in California
  • $47 million – Grant rescinded for Baltimore offshore wind logistics hub
  • $48 million – Canceled for Staten Island offshore wind terminal project
  • December 2022 – Date of first-ever auction for floating wind farm leases under Biden
  • September 4 – Scheduled court hearing for states’ legal challenge

The administration’s aggressive stance against offshore wind represents a fundamental shift in U.S. energy policy. With legal battles intensifying and project timelines collapsing, the renewable energy sector faces unprecedented uncertainty just as global climate pressures mount.