Seven States Sue Trump Administration Over Wind Lease Buybacks

A coalition of seven Northeastern states, led by New York, filed a lawsuit in the U.S. District Court for the District of Columbia on June 2, 2026. The suit challenges a March agreement between the Trump administration and French energy company TotalEnergies to cancel offshore wind leases off the coasts of New York and North Carolina.

Under the settlement, the U.S. government reimbursed TotalEnergies—and its subsidiary Attentive Energy—approximately $928 million from the Treasury Department’s Judgment Fund. In exchange, the company agreed to cease new offshore wind development in the U.S. and redirect nearly $1 billion toward domestic fossil fuel projects, including a liquefied natural gas plant in Texas. The plaintiffs, which include New Jersey, Connecticut, Maine, Massachusetts, Rhode Island, and Vermont, argue the deal is an illegal "pay-not-to-play scheme" that bypassed administrative procedures and violated the Outer Continental Shelf Lands Act.

Interior Secretary Doug Burgum defended the payment as a refund of an interest-free loan and cited national security concerns, asserting that the original Biden-era leases were only viable through subsidies. The U.S. Department of the Interior stated the deal was voluntary and approved by the Department of Justice. TotalEnergies CEO Patrick Pouyanné characterized the shift as a pragmatic response to the Trump administration's energy policy.

New York officials claim the cancellation threatens over 1,000 union jobs and undermines regional climate goals. The coalition seeks a court order to overturn the agreement and restore the cancelled leases.