Trump’s Wind Industry Crackdown Sparks Backlash as Developers Abandon Offshore Projects

The Trump administration’s aggressive push to dismantle the U.S. wind industry is facing mounting backlash as developers abandon offshore projects under financial pressure, while legal and regulatory hurdles continue to stall new developments.

Trump’s Regulatory Siege on Wind Energy

President Donald Trump’s attempts to cripple the offshore wind industry through regulatory obstruction have largely failed in court. However, the administration is now applying the same tactics to onshore wind projects, withholding over 150 approvals from the Department of Defense—despite these projects being unrelated to military infrastructure. The move defies bipartisan consensus on the urgent need to expand power generation to meet surging demand from data centers and electrification.

“This is the strategy for how you kill an industry while losing every case: just keep coming at the industry. Create an uninvestable climate and let the chips fall where they may.”

— Energy lawyer, speaking to Heatmap’s Jael Holzman

Cash-for-Quitting Offshore Wind Deals Draw Scrutiny

In March, French energy giant TotalEnergies became the first offshore wind developer to accept the Trump administration’s offer of $1 billion to abandon two projects. While this appeared to signal progress for the administration’s anti-wind agenda, backlash quickly emerged.

Investigations by Heatmap’s Emily Pontecorvo revealed that the agreement did not require TotalEnergies to invest in fossil fuels, as the administration claimed. Additionally, the payment may not have met the legal criteria for withdrawal from a federal fund designated for settlements. Following these findings, House Democrats announced an investigation into the contract.

This week, California regulators launched a probe into one of two new developments that accepted Trump’s offer—a floating offshore wind project slated to be the first of its kind on the West Coast. Meanwhile, the New York State Common Retirement Fund announced it would reconsider its $1.6 million stake in TotalEnergies, citing “significant concerns” over the company’s decision to cancel offshore wind leases and expand fossil fuel investments.

The fund’s letter to TotalEnergies CEO Patrick Pouyanné, as reported by the Financial Times, underscores the escalating reputational and financial risks facing companies participating in the administration’s wind industry crackdown.

Industry and Investor Pushback Grows

Legal experts and policymakers warn that the administration’s tactics—combining regulatory delays with financial incentives—are creating an unstable environment for renewable energy investment. The strategy risks undermining U.S. climate goals and energy security, despite the urgent need for expanded clean energy infrastructure.