The Trump administration on Monday, March 23, 2026, finalized a $980 million agreement to cancel federal leases for two prominent offshore wind projects located along the U.S. East Coast. The Department of the Interior (DOI) and the Bureau of Ocean Energy Management (BOEM) issued a joint statement confirming the termination of the Atlantic Shores South project off the coast of New Jersey and the Empire Wind 2 project off the coast of New York and New Jersey. This decision marks a significant reversal of previous federal support for renewable energy infrastructure in federal waters.
Under the terms of the settlement, the federal government will pay approximately $980 million to the developers involved in these projects. This payment is intended to compensate the companies for costs incurred during the planning and initial development phases, as well as to secure the legal relinquishment of the lease areas back to federal control. The administration stated that the decision was made to resolve long-standing regulatory disputes and to address concerns regarding the impact of large-scale wind arrays on commercial fishing, maritime safety, and coastal aesthetics.
The Secretary of the Interior characterized the move as a necessary step to protect the economic interests of coastal communities and to refocus national energy policy on traditional energy production. The Secretary noted that the projects had faced significant logistical challenges and that the settlement provides a definitive resolution for both the government and the private sector. The administration also cited the potential for the lease areas to be repurposed for other maritime uses, though specific plans were not detailed in the official announcement.
The Atlantic Shores South project was a joint venture between Shell New Energies US LLC and EDF Renewables North America. The Empire Wind 2 project was being developed by Equinor in partnership with BP. Both projects had previously faced delays attributed to rising material costs, supply chain disruptions, and local opposition. By accepting the settlement, the developers have agreed to drop all pending litigation against the federal government related to permit delays and regulatory requirements. The agreement effectively ends the current development cycle for these specific sites.
The announcement has drawn immediate scrutiny from members of Congress and environmental organizations. Critics of the deal have highlighted the nearly $1 billion price tag, describing it as an unprecedented use of taxpayer funds to halt established infrastructure projects. A spokesperson for the House Committee on Natural Resources issued a statement arguing that the cancellation undermines the United States' progress toward energy independence and clean energy goals. The $980 million payout will be drawn from the DOI’s existing budget allocations for the 2026 fiscal year. According to BOEM officials, the process of decommissioning any existing sensor equipment and returning the seabed to its original state will begin within the next 30 days.