New York and six other states have filed a lawsuit challenging the Trump administration's decision to cancel a major offshore wind lease off the state's coast, arguing the move unlawfully halted a project expected to deliver power to New York City and support thousands of jobs.
The lawsuit targets a March 2026 agreement between the federal government and TotalEnergies that canceled the Attentive Energy offshore wind lease area located approximately 47 miles offshore. State officials say the project would have powered more than 700,000 homes, generated billions of dollars in economic benefits, and played a role in meeting growing electricity demand in the region.
According to the lawsuit, the agreement canceled the lease and provided TotalEnergies with a federal reimbursement of $795 million. The states argue federal officials lacked the authority to terminate the lease under the process used and improperly relied on the federal Judgment Fund to make the payment.
“This pay-not-to-play scheme pressuring a foreign company to forego planned offshore wind projects in America in favor of gas and oil drilling is an outrageous abuse of taxpayer dollars that hurts our ability to meet our energy needs, create good jobs, and help secure American energy independence while reducing emissions,” New York Gov. Kathy Hochul said in a statement.
New York Attorney General Letitia James said the administration was attempting to derail a major energy project after previous efforts to halt offshore wind development had been challenged in court.
“After repeatedly losing in court, 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,” James said.
The lawsuit argues that canceling the project would harm state energy planning efforts, particularly as electricity demand continues to rise. New York's State Energy Plan identifies offshore wind as a significant component of its future resource mix, especially for serving downstate load centers.
The coalition joining New York includes Connecticut, Maine, Massachusetts, New Jersey, Rhode Island, and Vermont. The states are asking the court to overturn the lease cancellation and block further implementation of the agreement.
The case represents the latest legal battle over offshore wind development in the United States and could have broader implications for the stability of federally issued energy leases and long-term infrastructure investment decisions.
