The U.S. Department of the Interior announced on Monday an agreement with TotalEnergies to end two offshore wind projects, redirecting nearly $1 billion in investments toward natural gas and LNG production.

Under the deal, TotalEnergies Renewables USA and its subsidiary Attentive Energy will renounce Lease OCS-A 0535 in the Carolina Long Bay area off North Carolina and Lease OCS-A 0538 in the New York Bight area off New York State. The company originally paid $133 million for the Carolina Long Bay lease and $795 million for the New York Bight lease during Biden-era auctions. In exchange, the government will reimburse those amounts dollar-for-dollar, totaling approximately $928 million. TotalEnergies has pledged not to pursue any new offshore wind projects in the United States due to national security concerns and will reinvest the funds in U.S. oil, natural gas, and LNG developments, including the expansion of the Rio Grande LNG plant in Texas.

Interior Secretary Doug Burgum hailed the agreement as a victory for President Trump's energy agenda. "Offshore wind is one of the most expensive, unreliable, environmentally disruptive, and subsidy-dependent schemes ever forced on American ratepayers and taxpayers," Burgum said. "We welcome TotalEnergies’ commitment to developing projects that produce dependable, affordable power to lower Americans' monthly bills."

Attorney General Pamela Bondi added that the deal prioritizes affordability over previous ideological policies, enhancing national security and grid reliability. TotalEnergies CEO Patrick Pouyanné stated the company views the shift as a more efficient use of capital, supporting U.S. gas exports to Europe and domestic data center needs.

This agreement follows a New York Times report last week revealing the administration's proposed settlements for the same projects after repeated court defeats. In December 2025, the Interior Department paused leases for five under-construction offshore wind projects, Vineyard Wind 1 off Massachusetts, Revolution Wind off Rhode Island, Coastal Virginia Offshore Wind, Sunrise Wind off New York, and Empire Wind 1 off New York, citing Department of Defense concerns over radar interference from turbine blades and towers. Federal judges issued injunctions allowing those projects to resume work, marking five legal setbacks for the administration.

The administration has taken other steps to curb offshore wind, including a January 2025 executive order withdrawing outer continental shelf areas from leasing and termination of $679 million in funding by Transportation Secretary Sean Duffy in August 2025. Proponents argue these measures protect national security and promote reliable energy sources amid Trump's push for fossil fuel dominance.

The two ended projects were not yet under construction, unlike the five that courts protected. Industry analysts note the deal avoids further litigation while aligning with the administration's priorities.