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Trump Freezes $28 Billion in East Coast Wind Farms

Trump Freezes $28 Billion in East Coast Wind Farms

90-day national security review halts all five offshore wind projects under construction

Overview

On December 22, Interior Secretary Doug Burgum hit pause on every major offshore wind farm under construction off the East Coast. Vineyard Wind, Revolution Wind, Sunrise Wind, Empire Wind, and Coastal Virginia Offshore Wind—representing $28 billion in investment and enough power for millions of homes—all stopped work on orders from Washington. The reason: radar interference and national security risks near military installations and population centers.

This is the sharpest reversal yet in Trump's war on windmills. Biden spent four years approving 11 offshore wind projects, building what was supposed to become America's answer to Europe's renewable energy success. Now the Pentagon's concerns about turbine blades masking military targets have given Trump the legal cover to potentially kill the industry before it gets off the ground. Thousands of jobs, billions in European investment, and the viability of U.S. offshore wind all hang on what happens in the next 90 days—or however long the review actually takes.

Key Indicators

$28B
Investment frozen by pause
Total capital committed to the five halted East Coast projects
5
Projects halted
All large-scale offshore wind farms currently under construction in U.S. waters
11
Biden-era approvals
Commercial-scale offshore wind projects approved 2021-2024, representing 15+ gigawatts
11%
Ørsted stock drop
Danish wind giant's shares tumbled on December 23 following announcement
90 days
Initial review period
Can be extended indefinitely by Interior and Defense departments

People Involved

Doug Burgum
Doug Burgum
U.S. Secretary of the Interior (Implementing Trump's offshore wind freeze)
Donald Trump
Donald Trump
President of the United States (Delivered on campaign promise to end offshore wind)

Organizations Involved

Ørsted A/S
Ørsted A/S
Danish offshore wind developer
Status: Major exposure to U.S. policy risk

World's largest offshore wind developer, heavily bet on U.S. expansion.

Dominion Energy
Dominion Energy
U.S. utility company
Status: Fighting to save Virginia's offshore wind project

Virginia utility developing nation's largest offshore wind farm.

AV
Avangrid
U.S. renewable energy company
Status: Partner in halted Vineyard Wind project

Developing Vineyard Wind with Copenhagen Infrastructure Partners.

U.S. Department of Defense
U.S. Department of Defense
Federal agency
Status: Coordinating national security review with Interior

Pentagon flagged radar interference as basis for offshore wind pause.

RE
Responsible Offshore Development Alliance (RODA)
Fishing industry coalition
Status: Legal challenger to offshore wind projects

Fishing groups opposing offshore wind on environmental and economic grounds.

Timeline

  1. Wind Developer Stocks Crash

    Market

    Ørsted falls 11%, Equinor drops 1%, Dominion declines 4% as $28 billion investment hangs in balance.

  2. Interior Freezes Five Projects

    Policy

    Burgum orders 90-day construction pause for all East Coast offshore wind farms, citing Pentagon radar concerns.

  3. Senate Confirms Burgum

    Government

    Former North Dakota governor approved as Interior Secretary 79-18, having served as Trump's energy policy advisor.

  4. Appeals Court Backs Vineyard Wind

    Legal

    Appellate court upholds ruling that fishing groups lack standing to challenge projects on environmental grounds.

  5. Trump Vows Day-One Wind Ban

    Statement

    Presidential candidate promises to "end" offshore wind development immediately upon taking office.

  6. Biden Hits 10-Project Milestone

    Policy

    Administration approves 10th commercial offshore wind project, representing 15+ gigawatts—half the 2030 goal.

  7. Trump: 'Stop the Windmills'

    Statement

    Trump tells Europe to halt wind development during Scotland trip: "ruining your beautiful fields and valleys and killing your birds."

  8. Vineyard Wind Blade Shatters

    Industry Crisis

    107-meter GE Vernova blade breaks apart, littering Nantucket beaches with fiberglass. Manufacturing defect traced to Canadian plant.

  9. Judge Rejects Fishing Industry Challenge

    Legal

    Federal judge sides with BOEM and Vineyard Wind, questions economic harm claims from fishermen.

  10. Fishing Groups Sue Vineyard Wind

    Legal

    RODA files lawsuits alleging whale habitat destruction and fishing ground losses. Courts later reject their standing.

  11. Biden Sets 30 GW Goal

    Policy

    Administration announces target of 30 gigawatts of offshore wind by 2030, enough for 10 million homes.

  12. Biden Approves Vineyard Wind

    Policy

    First large-scale U.S. offshore wind project approved: 800 megawatts to power 400,000 Massachusetts homes.

  13. Block Island Wind Farm Opens

    Industry Milestone

    America's first offshore wind farm begins operation off Rhode Island—just 30 megawatts, a fraction of European scale.

Scenarios

1

Review Extends Indefinitely, Projects Die

Discussed by: NRDC, renewable energy analysts, offshore wind industry observers

The 90-day window stretches into months or years as Interior and DOD claim they need more time to assess threats. Stop-work costs—already $50 million weekly for Empire Wind, $15 million for Revolution Wind—bleed developers dry. European companies write off their American investments and redeploy capital to friendlier markets. Without new permits or lease sales, the entire U.S. offshore wind pipeline evaporates. Trump gets what he wanted without needing Congress: an industry strangled in its crib.

2

Review Concludes, Projects Resume with Conditions

Discussed by: Industry advocates, legal analysts, power grid operators

After 90 days, Interior announces turbines can proceed with new restrictions: adjusted siting to reduce radar interference, required coordination with military installations, or technology modifications. Developers absorb the delays and added costs because billions are already sunk. Construction resumes but the sector's growth trajectory is permanently damaged. Future projects face a gauntlet of new requirements that make U.S. offshore wind uncompetitive with European markets where governments actively support development.

3

Legal Challenges Force Projects to Continue

Discussed by: Environmental lawyers, state attorneys general, renewable energy legal experts

States and developers sue, arguing Interior violated the Administrative Procedure Act by reversing multi-agency approvals without genuine new evidence—especially since DOD signed off on every project during permitting. Courts issue injunctions forcing work to continue during litigation. But even if developers win in court, the uncertainty and delays have already spooked investors. The legal victory is pyrrhic: the industry survives but can't attract the capital needed to scale.

4

Congress Intervenes to Save Industry

Discussed by: Northeast Democrats, energy policy analysts

Democratic senators from Massachusetts, New York, Virginia, and other coastal states with offshore wind contracts pressure GOP moderates worried about abandoned projects in their districts. Bipartisan legislation emerges mandating Interior complete the review within 90 days and requiring clear evidence of national security harm to justify cancellation. Trump faces a choice: veto and own the job losses, or grudgingly allow some projects to proceed while claiming credit for "making them safer."

Historical Context

Obama Coal Regulations vs. Trump Rollback

2015-2019

What Happened

Obama's Clean Power Plan aimed to cut coal plant carbon emissions 32% by 2030. Trump's EPA repealed it in 2019, replacing it with the weaker Affordable Clean Energy rule. Environmental groups and states sued. Courts eventually struck down Trump's replacement as legally insufficient. The whipsaw left energy companies in regulatory limbo.

Outcome

Short term: Coal industry got temporary relief but investors still fled due to market forces favoring natural gas and renewables.

Long term: Supreme Court limited EPA's climate authority in 2022's West Virginia v. EPA, constraining future administrations regardless of party.

Why It's Relevant

Shows how administration reversals create investment uncertainty even when courts intervene—and how national security claims provide stronger legal footing than environmental policy disagreements.

Reagan Pulls Solar Panels from White House

1986

What Happened

Jimmy Carter installed 32 solar thermal panels on the White House roof in 1979 as a symbolic commitment to renewable energy independence after the oil crisis. Ronald Reagan had them removed in 1986 during roof repairs and never reinstalled them, shifting policy back toward fossil fuels and market-driven energy development.

Outcome

Short term: U.S. solar industry lost federal support and momentum. Japan and Germany surged ahead in solar manufacturing and deployment.

Long term: America ceded renewable energy leadership for decades. By the 2000s, most solar panels used in the U.S. were manufactured in Asia.

Why It's Relevant

Demonstrates how symbolic policy reversals can telegraph administration priorities and chill an emerging industry before it achieves scale—exactly what offshore wind developers now fear.

Europe's Offshore Wind Success

1991-present

What Happened

Denmark installed the first offshore wind farm in 1991. The UK, Germany, and Netherlands followed with stable policy frameworks, long-term subsidies, and coordinated defense ministry cooperation on radar concerns. By 2024, Europe had deployed over 30 gigawatts of offshore wind—double Biden's 2030 U.S. target.

Outcome

Short term: European energy costs fell as offshore wind became cheaper than fossil fuels. Siemens, Vestas, and Ørsted became global industry leaders.

Long term: Denmark now gets 55% of electricity from wind. The UK leads with 15.9 GW offshore capacity. Stable policy enabled private sector investment at scale.

Why It's Relevant

Proves offshore wind works when governments provide regulatory certainty. The U.S. had four years of Biden's European-style support. Trump's reversal shows how quickly policy instability can unravel an industry that needs decades of consistent backing.