The recent decision by the Trump administration to freeze leases for offshore wind farms has left only two operational wind farms in the U.S. coastal waters. These include a small project off the coast of Rhode Island, operational since 2016, and a larger project off New York, which has been fully operational since 2023. The five wind farms targeted for the lease freeze had all previously obtained permits from the Biden administration. Citing unspecified national security concerns, the Trump administration's action effectively blocks construction and operations, putting billions of dollars already invested at risk.
Among the projects affected, Vineyard Wind 1 off Massachusetts is already partially operational, with about half of its 62 turbines contributing power to the electric grid. However, in a statement regarding the lease freeze, Doug Burgum, the Secretary of the Interior, emphasized that “the prime duty of the United States government is to protect the American people,” indicating that the decision was made to address emerging national security risks associated with large-scale offshore wind projects near East Coast population centers.
Former President Trump has long criticized offshore wind turbines, labeling them as unattractive, expensive, and inefficient. His opposition to clean energy initiatives dates back to his unsuccessful attempt 14 years ago to block an offshore wind farm visible from one of his golf courses in Scotland. The other projects impacted by the lease freeze include Coastal Virginia Offshore Wind, Sunrise Wind, Empire Wind off New York, and Revolution Wind off Rhode Island and Connecticut.
The abrupt announcement of the lease freeze has left wind farm developers in disarray. David Schoetz, a spokesperson for Equinor, the developer of Empire Wind, stated that the company is currently reviewing the stop-work order and is seeking further clarification from the government. Meanwhile, Jeremy Slayton, representing Dominion Energy, described the Coastal Virginia Offshore Wind Project as “essential for American national security and meeting Virginia’s dramatically growing energy needs,” arguing that any delays could threaten grid reliability crucial for military and civilian operations.
In support of the lease freeze, the Interior Department indicated that classified reports from the Pentagon identified potential national security risks posed by the wind farms. An unclassified report from the Energy Department suggested that these wind projects could interfere with radar systems. Interestingly, Coastal Virginia Offshore Wind had previously received support from Virginia's Governor, Glenn Youngkin, but its future became uncertain following Abigail Spanberger's election as governor.
Empire Wind has experienced an inconsistent relationship with the Trump administration. In April, construction on the project was halted, pushing the $5 billion initiative to the edge of collapse. After negotiations with New York Governor Kathy Hochul, the project was allowed to proceed, but the recent lease freeze has reignited uncertainty. Senator Chuck Schumer criticized the administration's fixation on dismantling offshore wind projects, labeling it as “unhinged, irrational, and unjustified.”
The financial implications for the developers of the five offshore wind farms could be severe. Equinor reported a loss of $50 million per week when work on Empire Wind was initially paused in April. Similarly, delays to Revolution Wind could cost its developer, Orsted, approximately $15 million weekly. Recently, Orsted announced plans to cut around 2,000 jobs, or 25 percent of its workforce, further exacerbated by the Trump administration’s actions alongside tariffs, inflation, and rising interest rates.
In response to the leasing freeze, Connecticut Attorney General William Tong criticized the administration's actions, describing them as “lawless and erratic.” He emphasized that the ongoing delay of projects like Revolution Wind results in lost jobs, increased energy costs, and continued reliance on fossil fuels when clean energy alternatives are readily available.
Executives within the offshore wind industry condemned the administration's recent decision. Erik Milito, president of the National Ocean Industries Association, highlighted the positive impact of the offshore energy sector on job creation and the necessity to meet the growing energy demands in the northeastern United States. Retired U.S. Navy Commander Kirk Lippold argued that these projects would actually bolster national security by diversifying energy supplies and providing reliable power to the grid.
As the situation unfolds, it remains clear that the Trump administration's lease freeze poses significant challenges to the future of offshore wind energy in the U.S., impacting both the economy and the nation’s transition to clean energy.