Gavin Newsom Accuses the Trump Administration of Paying Offshore Wind Developers Nearly $900 Million To Walk Away From Projects

California Gov. Gavin Newsom accused the Trump administration of using taxpayer money to kill clean energy projects after federal officials reached a deal to reimburse two offshore wind developers nearly $900 million if they abandon U.S. leases and redirect money toward fossil fuel infrastructure.

"The Trump administration AGAIN just gave companies almost A BILLION DOLLARS in taxpayer money to abandon clean energy projects and line Big Oil's pockets," Newsom wrote on X, reacting to the cancellation of projects that included Golden State Wind, a proposed floating offshore wind development off Morro Bay, California.

The Interior Department said Bluepoint Wind and Golden State Wind agreed to terminate their offshore wind leases. Reuters reported the deal totals $885 million: $765 million tied to Bluepoint Wind, which was planned off New Jersey and New York, and $120 million tied to Golden State Wind off California's central coast. Global Infrastructure Partners, now part of BlackRock and a Bluepoint partner, will redirect money toward a U.S. liquefied natural gas facility. Golden State Wind will receive its lease fees back if it makes equivalent investments in traditional energy sectors.

Interior Secretary Doug Burgum defended the move, saying the administration was prioritizing "affordable" and "reliable" energy and arguing the projects depended on large subsidies. The AP reported that both companies also agreed not to pursue new offshore wind projects in the United States.

The deal follows a similar agreement last month with TotalEnergies, which received nearly $1 billion to abandon offshore wind leases off the East Coast and shift investment toward fossil fuel infrastructure, including LNG and shale gas.

Trump has made opposition to wind power a signature energy position. On his first day back in office, he suspended new federal offshore wind leasing pending a review. "We're not going to do the wind thing," Trump said. "Big, ugly windmills. They ruin your neighborhood." Reuters reported that he also described wind turbines as ugly, expensive, and harmful to wildlife.

Trump has also repeatedly claimed that offshore wind development kills whales, an allegation scientists and fact-checkers have said is not supported by evidence. At a 2023 rally, he said, "Windmills are causing whales to die in numbers never seen before" and added, "The windmills are driving them crazy."

The policy shift is hitting an industry that had been expanding rapidly. The American Clean Power Association said the U.S. clean power sector invested $79 billion in new projects in 2025, supported more than 1.4 million jobs and accounted for more than 90% of all new electricity capacity added to the grid. The group also says clean power projects generate about $3 billion annually in state and local tax revenue and $3.2 billion in land lease payments.

Offshore wind alone had been projected to bring tens of thousands of jobs and billions in port, vessel, manufacturing, and coastal infrastructure investments. ACP previously estimated the sector could drive $65 billion in investment and create 56,000 U.S. jobs by 2030.

The cancellations are not isolated.

The administration previously halted or challenged other offshore wind projects, including Equinor's $5 billion Empire Wind project off New York. RWE, Germany's largest power producer, also paused offshore wind activity in the U.S. amid regulatory uncertainty under Trump.

For California, the loss of Golden State Wind undercuts a central piece of the state's offshore wind strategy.