New York’s Attorney General, led by state officials, has filed a lawsuit against the Trump administration to overturn a deal that halted a French energy giant’s offshore wind ambitions in the United States. The suit challenges the agreement that forced TotalEnergies to stop developing U.S. wind farms and redirected its focus toward oil and gas production for the national transition today.

The agreement, signed in March, awarded TotalEnergies $928 million—the value of its offshore wind leases—as compensation. In return, the company pledged to invest that sum into domestic oil and gas projects. Critics argue the deal sidelines renewable energy growth and weakens the U.S. commitment to decarbonization goals in 2024.

Investors watch closely as the lawsuit could force a reevaluation of federal incentives for offshore wind, potentially reshaping capital allocation in the energy sector. Should the court side with New York, TotalEnergies may face penalties or be required to resume wind development, altering the balance between fossil fuel investment and renewable expansion in the United States.