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The billion-dollar Revolution Wind Farm project off Rhode Island’s coast is back in motion after a D.C. federal judge slammed the Trump administration’s sudden halt as “arbitrary and capricious.” On Monday, U.S. District Judge Royce Lamberth issued a preliminary injunction in favor of Danish energy giant Ørsted, allowing the company to restart construction on the massive offshore installation, which is already about 80% complete.

The ruling comes just weeks after the U.S. Bureau of Ocean Energy Management (BOEM) ordered a full stop on August 22, citing vague national security risks. Ørsted argued the move cost it roughly $2.3 million a day in delays and risked derailing the project entirely.

Judge Rebukes Agency’s “About-Face”

Judge Lamberth didn’t mince words, saying the bureau’s sudden reversal ignored years of exhaustive federal review already completed.

“The statutory factors now under review are the same ones the agency already evaluated and cleared,” Lamberth said from the bench. He criticized the order for raising only “the mere potential for national security concerns,” without any supporting findings.

Ørsted emphasized the project, once finished, will power 350,000 homes across Rhode Island and Connecticut. Both states, with power purchase agreements already inked, also sued to overturn the administration’s order.

Clock Ticking on Specialized Equipment

Beyond daily losses, Ørsted warned the project faced a catastrophic timeline crunch. A specialized ship required to finish the work will be unavailable after December—and not free again until 2028 at the earliest.

“The entire enterprise could collapse,” Lamberth said, stressing the “irreparable harm” if delays continue. He ruled the balance of equities weighed heavily toward Ørsted, citing the potential collapse of the project and its benefits for clean energy jobs and security.

Clash Between Administration and Wind Industry

The stop-work order came after President Donald Trump, once supportive of offshore wind, pivoted sharply against the industry. Since retaking office in January, he issued an executive order halting all new federal reviews and permits for wind farms. The action sparked lawsuits across states banking on renewable projects.

The government argued Ørsted should have exhausted administrative appeals before going to court, but Lamberth rejected the claim, pointing to the Supreme Court’s Darby v. Cisneros precedent that only requires exhaustion when statutes demand it.

Wider Implications for U.S. Offshore Wind

The ruling could ripple beyond Rhode Island. The government disclosed plans to freeze work on another offshore wind project south of Martha’s Vineyard, facing its own legal challenges from boat operators, residents, and a Native American tribe.

Environmental groups welcomed Monday’s decision. Kate Sinding Daly of the Conservation Law Foundation called it a victory for energy independence, local jobs, and the clean power transition.

Ørsted, represented by Latham & Watkins LLP, said it will restart construction immediately, pledging to prioritize worker and environmental safety.

The government’s legal team included attorneys from the U.S. Department of Justice’s Environment and Natural Resources Division.