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Washington, D.C. — September 2, 2025 — The U.S. Department of Transportation (DOT) today announced the cancellation of $679 million in federal funding previously allocated to offshore wind projects, marking a major policy shift under President Donald Trump. The administration stated that the funds will instead be invested in revitalizing America’s shipbuilding industry and strengthening traditional energy development.

The decision affects a dozen projects, including $427 million for an offshore wind project in Humboldt County, California, and $48 million for the Arthur Kill Terminal project in Staten Island, New York.

“Wasteful wind projects are using resources that should be directed toward America’s maritime future,” said U.S. Transportation Secretary Sean P. Duffy. “Joe Biden and former Secretary Pete Buttigieg bent over backwards to funnel transportation dollars into their Green New Scam, ignoring the dire needs of our shipbuilding industry. Thanks to President Trump, we are prioritizing real infrastructure over costly fantasies that deliver little return.”

The announcement follows Trump’s January 20 presidential memorandum ordering a temporary halt to new offshore and onshore wind approvals pending a review of leasing, permitting, and environmental impacts. The move has sparked strong opposition. A coalition of 17 states and the District of Columbia filed suit in Massachusetts federal court, arguing the memorandum violates the Administrative Procedure Act.

The DOT emphasized that redirected funds will focus on rebuilding America’s shipbuilding capacity, boosting reliable energy sources, and reinforcing national energy security.

Criticism quickly followed. The Oceanic Network, a nonprofit supporting offshore renewable energy, warned that the decision undermines U.S. competitiveness and job growth. “The Trump administration is weakening national security and destroying good-paying jobs by pulling critical funding for maritime infrastructure upgrades,” said CEO Liz Burdock.

Last week, the administration also issued a stop-work order on Orsted’s Revolution Wind project off Rhode Island, citing national security concerns. The company, which reported the project is 80% complete, is considering legal action. Meanwhile, the Department of the Interior confirmed it will vacate approval for US Wind’s Maryland Offshore Wind project by September 12 amid legal challenges from coastal cities, fishing groups, and advocacy organizations.

The policy shift highlights the Trump administration’s long-standing opposition to wind energy, reaffirming its focus on shipbuilding and traditional energy investment as core pillars of U.S. infrastructure strategy.