The Trump administration will reimburse two energy companies if they walk away from offshore wind projects and invest in fossil fuel infrastructure instead, the Department of the Interior announced Monday.
The agreements cover the Bluepoint Wind project off New York and the Golden State Wind project off California. Both projects will end their federal offshore wind leases.
Interior Secretary Doug Burgum said the projects were tied to costly subsidies and raised national security concerns.
“The companies that bid for these offshore wind leases were basically sold a product in 2022 that was only viable when propped up by massive taxpayer subsidies,” Burgum said in a statement. “Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure.”
Under the deal, Global Infrastructure Partners, which is part of BlackRock, will invest up to $765 million in a U.S.-based liquefied natural gas facility. That amount matches what the company originally spent on its offshore wind lease for Bluepoint Wind.
In exchange, the Interior Department will cancel the lease and reimburse the company based on the amount it invests in the LNG project. Bluepoint Wind was planned off the coast of New York and was expected to power more than 1 million homes.
Golden State Wind, planned for the Morro Bay Wind Energy Area off California’s central coast, will also end its lease. The project will be eligible to recover about $120 million in lease fees after investing an equal amount in U.S. oil and gas assets, energy infrastructure, or LNG projects along the Gulf Coast.
Golden State Wind is a joint venture involving Ocean Winds and Reventus Power. Ocean Winds is jointly owned by ENGIE and EDP Renewables, while Reventus Power is a portfolio company of the Canada Pension Plan Investment Board.
The Interior Department said the agreements also address unresolved national security concerns at both projects. The Trump administration had previously paused offshore wind projects under construction in December 2025, citing risks identified by the Department of War.
Those concerns included radar interference from turbine blades, also known as “clutter,” which officials said could make it harder to detect real threats. Critics have also raised concerns that offshore wind infrastructure could create vulnerabilities for underwater detection systems and the electric grid.
Democrats criticized the move. Senate Minority Leader Chuck Schumer (D-NY) called the cancellation of the wind farms “despicable.”
“These projects would have delivered desperately needed cheaper, cleaner energy to our homes and small businesses,” Schumer wrote on Facebook. “All this does is kill good-paying union jobs and send energy prices even higher.”
The Trump administration has made expanding fossil fuel production a central part of its energy agenda. The latest agreements follow a similar deal with TotalEnergies last month and mark another step in the administration’s effort to move federal support away from offshore wind.
Michael Brown, CEO of Ocean Winds North America, said the company is focused on financial discipline and reliable energy investments.
“Our priority remains [in] disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders,” Brown said.