US Offshore Wind Ambitions Jolted by Sudden Funding Cut
Trump administration cancels $679 million in federal support and halts a nearly-complete project, citing national security concerns.
The U.S. offshore wind industry was thrown into turmoil after the Trump administration abruptly canceled $679 million in federal funding for a dozen support projects and halted construction on a major wind farm nearing completion off the New England coast.
The Department of Transportation characterized the funding for port upgrades and staging areas as "wasteful," redirecting the capital to other maritime infrastructure. Simultaneously, the Department of the Interior ordered Danish developer Orsted A/S to cease all work on its 80% complete Revolution Wind project, citing unspecified "national security interests of the United States." The project was expected to power 350,000 homes in Connecticut and Rhode Island.
The dual actions signal significant political and financial headwinds for the burgeoning sector. The Revolution Wind project alone accounts for about 1,200 direct jobs, which are now at risk. The funding cancellations affect key infrastructure developments from California to Massachusetts, including a planned $427 million marine terminal at Humboldt Bay designed to support California’s ambitious offshore wind goals.
Political leaders and industry advocates reacted swiftly, condemning the move as a politically motivated attack that will harm consumers and investors. Connecticut Governor Ned Lamont stated the decision "will drive up the cost of electricity bills," while Attorney General William Tong said his office was "evaluating all legal options to protect Connecticut’s interests." Critics warned the sudden reversal undermines the investment climate for long-term energy projects in the U.S., creating uncertainty for a sector seen as critical for achieving national clean energy targets.