WASHINGTON — Seven northeastern U.S. states sued the Trump administration and French energy company TotalEnergies on June 2 over a deal to cancel a major offshore wind lease off New York in exchange for reimbursement and commitments to invest in fossil fuel projects.
New York led the coalition, which includes Connecticut, Maine, Massachusetts, New Jersey, Rhode Island and Vermont. The attorneys general filed the lawsuit in U.S. District Court for the District of Columbia, challenging a March 2026 agreement with the Department of the Interior.
Under the deal, the government agreed to reimburse TotalEnergies approximately $795 million to $928 million for lease payments related to the Attentive Energy project and another site off North Carolina. In return, the company committed to redirecting investments toward fossil fuel initiatives, such as oil and gas projects in Texas.
The states allege the agreement violates the Outer Continental Shelf Lands Act and improperly uses taxpayer funds designated for legal settlements. They argue the cancellation undermines state renewable energy goals and economic benefits expected from the wind projects.
New York Attorney General Letitia James said in a statement that the deal was unlawful. "This sham settlement agreement to unlawfully cancel an offshore wind lease and redirect the money paid for the lease to fossil fuel projects must be stopped," she stated, according to announcements from the coalition.
The Trump administration has defended the agreement as voluntary and within its authority, aimed at adjusting federal energy priorities. An Interior Department spokesperson described it as appropriate, though specific responses to the lawsuit were not detailed in initial reports.
The case highlights ongoing tensions between federal policy shifts under the current administration and state efforts to expand offshore wind capacity along the East Coast. The affected lease, known as OCS-A 0538 for Attentive Energy, was part of broader development in the New York Bight area.
Supporters of the lawsuit, including environmental and renewable energy groups, emphasize potential job creation and emissions reductions from the projects. Industry representatives and administration officials have cited concerns over costs, visual impacts and reliability of offshore wind.
As of mid-June 2026, the lawsuit remains in its early stages with no court rulings issued. The case is expected to address procedural and statutory questions regarding the Interior Department's authority to terminate the leases. Further hearings and potential appeals could follow.
