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Eight States Sue Trump Administration Over Offshore Wind Lease Buyouts


— September 26, 2026

New York Gov. Kathy Hochul, a Democrat, characterized the Trump administration’s agreements with Bluepoint Wind and Invenergy as an “unlawful pay-to-play scheme.”


A coalition of eight attorneys general have filed suit against the federal government, claiming that the Trump administration has made a series of unlawful payments designed to encourage private companies to cancel offshore wind leases.

In a press release, New York Attorney General Letitia James said that her office is suing to prevent the administration from paying about $1.4 billion in taxpayer funds for the guaranteed cancellation of at least four “critical offshore wind projects.”

“Americans are facing increasing energy costs because this administration would rather pay off energy companies than let us build the new power sources we need,” James said in a statement. “These illegal backroom deals take money that should have gone toward lowering New Yorkers’ bill sand hand it to fossil fuel projects in other states, all while our energy demand continues to grow. At a moment when every available resource should go to keep the lights on and prices down, this administration is choosing corruption over communities. We will fight until these unlawful deals are struck down.”

New York Attorney General and former city council member Letitia James. Image via Wikimedia Commons/user:Matthew Cohen. (CCA-BY-2.0).

New York Gov. Kathy Hochul, a Democrat, characterized the Trump administration’s agreements with Bluepoint Wind and Invenergy as an “unlawful pay-to-play scheme.”

“The Trump administration’s unlawful pay-to-play scheme to pressure companies to forego planned offshore wind projects in America is an outrageous abuse of taxpayer dollars that hurts our ability to meet our energy needs, reduce emissions, create good-paying jobs, and help secure American energy independence,” Hochul said. “Working with Attorney General James and the seven other AGs who filed this lawsuit, we will continue to fight back against the unending war against clean energy being waged by this President and his Republican allies to ensure a healthier and cleaner future that allows us to keep the lights on and costs down here in New York.”

The lawsuits, notes The Philly Voice, take explicit issue with the administration’s use of the “Judgment Fund,” a permanent appropriation established by Congress for the payment of court judgments won against the federal government. New Jersey Attorney General Jennifer Davenport said that this fund was “meant to settle genuine claims arising from actual or imminent litigation against the federal government.”

“This Administration is paying developers to abandon building new sources of energy at a time when our grid needs more power to meet demand and residents need relief from high electricity prices,” Davenport said. “Wind energy creates well-paid jobs and reduces our reliance on fossil fuels. The president cannot redirect public funds to make unauthorized investments in oil and gas simply because he favors the fossil fuel industry.”

Sources

Attorney General James and Governor Hochul Announce Lawsuit Challenging Trump Administration’s Illegal Offshore Wind Deals 

N.J. joins lawsuit challenging Trump’s payouts to stop offshore wind projects

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