By Mark Chediak
Jan 18, 2026 (Bloomberg) – President Donald Trump’s efforts to hinder offshore wind power in the US faced significant hurdles last week. Three judges blocked the enforcement of a government ban, allowing construction to continue on projects in New York, Rhode Island, and Virginia. Additionally, two more cases might yield similar outcomes soon.
Even if the turbines currently under construction start generating electricity as expected in the next year, Trump may have already made progress in diminishing the offshore wind industry. This is largely due to a drastic shift in government policy under President Joe Biden, which has increased the investment risks for multibillion-dollar projects that were already dealing with financial and technical challenges.
“The courts can halt the sudden enforcement of policies, but they can’t really create a stable environment for these projects,” said Atin Jain, an analyst at BloombergNEF. “Under this type of policy climate, investors are unlikely to get involved in US offshore wind for a while.”
Trump could still win his case in court. So far, the rulings allowing construction to continue are only temporary, and no final decisions have been made on whether the government’s Dec. 22 stop-work order was illegal. The administration has vowed to keep contesting the projects, claiming they pose hidden national security risks.
“President Trump will continue to aggressively implement his energy dominance agenda to lower energy bills, improve grid stability, and protect national security,” said White House spokeswoman Taylor Rogers.
Since his return to the White House, Trump has introduced multiple policies aimed at undermining the renewable energy sector while promoting fossil fuel production. On his first day back in office, he issued an executive order that paused federal approvals for wind projects on public lands and waters, causing months of uncertainty for the industry. A federal judge ruled that order illegal in December.
In addition to halting ongoing projects, the administration has also suggested in court documents that it aims to revoke offshore wind projects approved under Biden that have not yet started construction. Previously, Trump had supported the industry, advocating for enough turbines off US coasts to generate electricity equivalent to that of 30 nuclear reactors.
Trump’s One Big Beautiful Bill expedited the reduction of federal tax credits for offshore wind projects, which need to start construction by the middle of this year to qualify for subsidies. Without these incentives, the cost of offshore wind rises to about $199 per megawatt-hour, according to BloombergNEF estimates, making it challenging for developers to secure funding from investors.
The numerous obstacles presented by the administration have significantly hampered the US offshore wind industry. Early last year, BloombergNEF projected about 46 gigawatts of new offshore wind capacity by 2040. Now, the firm estimates only 6.1 gigawatts, nearly all of which comes from ongoing projects.
“The chances of any new projects starting are very low under the current federal stance on the wind industry,” Jain noted.
The US Department of the Interior, which issued the stop-work orders, claimed it acted due to national security concerns, citing new classified information about “adversary technologies” that could impact offshore wind projects. However, three judges have so far dismissed these claims after reviewing specific details.
The developers who won in court last week reported that the halt had cost them millions of dollars daily. They are working to complete installations while still having specialized vessels under contract.
Orsted A/S, a joint developer of the Revolution Wind project off New England, faced two halts due to Trump’s actions, both of which were overturned by federal judges. The developer reported losses of $105 million from the first pause, and $1.44 million per day from the second in December. Orsted's CEO Rasmus Errboe stated that they are now focused on completing the Revolution Wind project, with the first power generation expected to supply Rhode Island and Connecticut shortly.
Orsted has also challenged the government’s suspension of its Sunrise Wind project near New York, which aims to power nearly 600,000 homes. The company’s finances have suffered due to Trump’s anti-wind policies, leading them to reduce their workforce and implement a significant rights issue last summer to counteract setbacks from delayed and canceled projects, with shares dropping about 25% since early 2025.
“I don’t believe the administration has finished disrupting these projects, especially those that have a long way to go,” said Signe Sorensen, an analyst at Aegir Insights. “However, I believe that with each thwarted attempt, the next one will appear more and more unjustified, and these projects will ultimately be built despite Trump’s efforts against them.”
Equinor ASA stated that it would have had to cancel its Empire Wind project near New York but for the injunction blocking the stop-work order, avoiding potential losses of around $5.3 billion. The Norwegian energy company announced that it would resume installing turbines at its facility, which is nearly 60% complete, expected to power more than 500,000 homes by 2027.
Dominion Energy Inc. received a ruling from a judge on Friday that allowed the company to restart construction of an $11 billion wind project off the Virginia coast. Dominion stated that it would “now focus on safely restarting work” on the project’s 176 wind turbines, some of which will begin delivering electricity in just weeks.
“While our legal challenge continues, we will keep seeking a durable resolution through cooperation with the federal government,” the company noted in a statement. Orsted and Equinor also continued to promise collaboration with the administration to resolve concerns regarding the projects.
Meanwhile, another developer joined the legal dispute with the government. Vineyard Wind, a joint venture between Iberdrola SA’s subsidiary Avangrid Inc. and Copenhagen Infrastructure Partners, filed a lawsuit last week seeking an injunction that would allow it to complete an offshore wind farm that is 95% finished and currently operating.