Seven states, led by New York, are suing the Trump administration over its $928mn payment to TotalEnergies for exiting offshore wind projects. The coalition argues the March deal is "blatantly unlawful" and should be struck down by courts. The French company received a full refund for its leases after agreeing to redirect the investment to fossil fuel projects instead of planned wind farms that would have served Northeastern states.

The lawsuit claims the deal violated the Outer Continental Shelf Lands Act and improperly used the justice department's judgment fund. New York's Attentive Energy One project alone could have powered 700,000 homes in the state. The administration has cited national security concerns for blocking wind projects, which President Biden has called "the worst" energy source. The states argue the cancellations will harm their economies, energy needs, and climate goals.

This lawsuit represents the latest pushback against the administration's wind energy policies. The New York State Common Retirement Fund has threatened to re-evaluate its stake in TotalEnergies, while the California Energy Commission subpoenaed Golden State Wind after its $120mn agreement to end its offshore wind lease. Democratic senator Sheldon Whitehouse has opened a congressional investigation into the payments.