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Trump Offshore Wind Crackdown Fails—1,000 Workers, 350,000 Homes Back in Play

Trump Offshore Wind Crackdown Fails—1,000 Workers, 350,000 Homes Back in Play

A federal judge allows Ørsted’s $5 billion Revolution Wind project to resume off Rhode Island, overturning the Trump offshore wind crackdown.

WASHINGTON, D.C. —Former President Donald Trump’s aggressive effort to shut down America’s offshore wind industry suffered a major setback Monday when a federal judge ruled that the multibillion-dollar Revolution Wind project can resume construction.

The Revolution Wind project has long been a hot topic because of the Trump administration’s policies, renewable jobs, and global investment. The offshore power project, led by Danish renewable giants Ørsted and Skyborn Renewables, was halted on August 22nd when the Bureau of Ocean Energy Management (BOEM) issued a stop-work order citing unspecified “national security concerns.” The halt to progress on a wind farm that is already 80% complete has put more than 1,000 jobs at risk and billions in investment at risk.

But on Monday, U.S. District Judge Royce Lamberth lifted the stay, calling Trump’s offshore wind crackdownharmful and unreasonable,” insisting that developers have lost about $2.3 million for each day of delay, with specialized construction vessels unlikely to return until 2028 if the deadline slips. “I have no doubt that plaintiffs will suffer irreparable harm,” Judge Lamberth said in his ruling.

$5 Billion Clean Energy Milestone

Upon completion, the Revolution Wind project will provide enough clean electricity to power 350,000 homes across Rhode Island and Connecticut—about 2.5% of the region’s demand. Developers have already invested about $5 billion in the project, making it one of the largest clean energy initiatives in New England’s history. Ørsted warned that canceling it could cost more than $1 billion.

“This ruling allows us to immediately resume offshore work and complete this important project,” Orsted said in a statement.

Connecticut Attorney General William Tong and Rhode Island Attorney General Peter Neronha both praised the decision, calling it a victory for workers, families, and energy security.

Trump’s War on Offshore Wind

Trump sought to shut down offshore power projects on his first day in office and has done so by shutting down nearly all of the previous projects, including projects that were in the middle of construction, and by showing interest in oil, gas, and coal. And since returning to office, Trump has doubled down on his opposition to offshore wind, calling the industry expensive, unreliable, and a threat to fossil fuel dominance. The Rhode Island wind project is no exception, with his administration revoking permits, withholding $679 million in federal funding, suspending new leases across U.S. waters and trying to shut down projects in Massachusetts and Maryland.

Environmentalists say the moves are politically motivated. “Trump is trying to push renewable energy to the brink of extinction in favor of dirty and expensive fossil fuels,” said Nancy Pine of the Sierra Club, calling Monday’s ruling “a victory for the climate and American workers.”

The White House has pushed back, insisting that it is not the end of the legal battle. “This will not be the final decision on this issue,” said spokeswoman Anna Kelly, adding that Trump is committed to restoring “American energy dominance” by prioritizing fossil fuels.

The Big Picture

Construction on the Revolution Wind project began about 15 miles off the Rhode Island coast, following the example of the smaller Block Island Wind Farm. With more than 1,000 workers on site, the project is being seen as a bellwether for whether America can scale up offshore wind despite political opposition.

If completed, it would mark a significant turning point in U.S. clean energy policy—proving that offshore wind can withstand intense political opposition and provide jobs, investment, and renewable energy to millions of families.

With construction now resuming, Revolution Wind is committed to collaborating with the administration and stakeholders to ensure the project stays on track, securing jobs, clean energy, and progress for the region.

Why Equinor Says Trump Offshore Wind Ban Decision Is ‘Unlawful’

Trump Offshore Wind Ban Decision

The Trump administration has abruptly halted an offshore wind project already under construction off the coast of New York, which it has labeled “illegal,” with the Norwegian energy company Equinor behind the development. Equinor’s leadership is frustrated and concerned about what it sees as an unprecedented disruption to a fully approved project under Trump Offshore Wind Ban Decision.

On April 16, U.S. Interior Secretary Doug Burgum issued a stay on Equinor, citing “serious flaws” in the project’s environmental review process and claiming that the approval was “rushed.”

The $4.5 billion offshore wind power in the united states, Empire Wind, was expected to provide clean energy to millions of New York homes.

The sudden political shift has rattled industry

The announcement has shocked both investors and clean energy analysts, even though it has long been clear that former President Donald Trump opposes offshore wind – having previously criticized it during his first term – and industry insiders have assumed that federal permits issued would be honored under the existing legal framework.

U.S. Interior Secretary Doug Burgum
U.S. Interior Secretary Doug Burgum, Photo Credit: The Atlantic

“There were some political risks to the industry, but shutting down a project in the middle of construction – especially after years of permitting – is really disruptive,” said one analyst. Several other offshore wind projects along the US East Coast are now being reviewed for potential risks, creating widespread uncertainty in the renewables sector.

Equinor: ‘Stop-work orders are illegal’

Two weeks after the stop-work order, Equinor said it had yet to receive a detailed explanation from the US Department of State.

“Our position is clear: the stop-work orders are illegal,” said Equinor CFO Torgrim Reitan. “We had all the necessary permits in place by last year. Construction, including port development and seabed preparation at the turbine site, had already begun.”

According to Reitan, more than 30% of the project is already complete. The company has invested more than $2.5 billion in the project — $1.5 billion empire wind equinor of which was financed through debt — and expects strong returns over the next decade.

“It’s now a question of the sanctity of the deal,” Reitan added. “We invested in good faith and we are seriously considering our legal options.”

Questionable U.S. stability on ?

The suspension raises larger questions about political risk in the U.S. renewable energy market—questions typically related to countries experiencing political instability or regulatory chaos.

An analyst asked on the earnings call whether Equinor could face additional exposure to U.S. political risk. The company responded that it is confident in the broader U.S. energy market and is treating the situation as an isolated challenge involving “an asset and an investment.”

Still, the implications are significant. If federal authorities were to revoke permits through retroactive action without a clear reason, global energy companies could reconsider long-term commitments to U.S.-based projects.

Equinor has not yet filed a lawsuit but said legal action is “under active consideration.” The Department of State has not publicly responded to Equinor’s complaint or media outlets’ requests for clarification.

Legal experts have noted that revoking existing federal permits midstream could face strong court challenges, especially given the scale of the investment and public interest involved in offshore wind development.

Financial Impact on Trump Offshore Wind Ban Decision

Equinor shares fell about 1% in midday trading after the earnings call. The shutdown of the Empire Wind project is not the only challenge facing the company. Equinor also reported weaker-than-expected financial results due to low oil prices and soft trading returns under the Trump Offshore Wind Ban Decision.

Earnings per share came in at 66 cents, below the 83 cents forecast by analysts.

Despite the headwinds, some in the financial community are optimistic that the project will resume. “Basically, we expect that the US administration will allow work on the project to resume soon, to avoid litigation,” wrote Citi analyst Alastair Syme.

A pivotal moment for US offshore wind

The fate of Equinor’s Empire Wind project could have far-reaching consequences—not just for the company but for the entire offshore wind power in the united states. This case is now being closely watched by both developers, investors and policymakers, as it could set a precedent for how future renewable energy projects will be treated under a changing political backdrop.

Significance of the policy

  • Equinor Slams Trump-Era Wind Project Halt as ‘Unlawful’ for empire wind equinor
  • Project stoped Mid-Construction: Empire Wind, over 30% complete, abruptly stopped by U.S. Interior Department.
  • Legal Dispute Looms: Equinor cites all permits were secured and calls the halt illegal; legal action under review.
  • Having $2.5 billion at risk: Major investments already made—$1.5 billion in debt, $1 billion in equity.
  • Investor confidence falters as industry worries; U.S. regultory stability questioned.
  • Response U.S. government: No detailed explanation from State Department.
  • Market Analysis: Equinor shares fall; analysts predict project could be scrapped to avoid lawsuits.