New York v. Department of the Interior

AG coalition sues the Department of the Interior over its unlawful settlement with TotalEnergies, under which TotalEnergies would cancel two offshore wind leases in exchange for hundreds of millions of dollars in taxpayer funds.

On June 2, 2026, a coalition of seven attorneys general from New York, New Jersey, Connecticut, Maine, Massachusetts, Rhode Island, and Vermont filed a lawsuit against the U.S. Department of the Interior (DOI) for unlawfully cancelling TotalEnergies’s major offshore wind lease off the coast of New York. 

In March 2026, DOI announced a settlement agreement with TotalEnergies, a French energy company, under which TotalEnergies would cancel two offshore wind leases in exchange for hundreds of millions of dollars in taxpayer funds. In addition, the deal required TotalEnergies to invest in oil and gas projects and forgo development of new offshore wind projects in the United States.  

The coalition argues that this settlement agreement violates federal law governing offshore wind leases and federal settlement payouts, and are asking the court to vacate the agreement and restore the leases. DOI claimed that new national security concerns justified the cancellation, even though the federal government had already reviewed and approved the lease area after years of analysis and consultation with the Department of Defense. Under the agreement, the federal government would reimburse the company with $795 million from the federal Judgment Fund, which may be used only to settle claims related to ongoing or imminent litigation. The agreement then requires TotalEnergies to invest approximately $795 million into fossil fuel projects. DOI also announced that TotalEnergies had pledged not to develop any new offshore wind projects in the United States. 

The coalition also argues that the deal violates the Judgment Fund Act, as the $795 million payment was not a legitimate compromise settlement in an imminent lawsuit, but a pretextual ploy to subsidize fossil fueled energy sources and halt the wind energy industry. The coalition is asking the court to strike down the settlement, vacate the lease cancellation, and stop the administration from taking further action to implement this deal.  

The Trump Administration’s decision to illegally cancel this project will increase costs, exacerbate climate change, harm public health, and reduce the reliability of our energy grid. President Trump has made his opposition to offshore wind clear for years, and this action reflects a continued effort to undermine clean energy development in favor of fossil fuel interests. Massachusetts will continue to challenge illegal actions that threaten our economy, our environment, and our residents.Attorney General Andrea Campbell

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