The Trump administration’s ongoing effort to dismantle Joe Biden’s vision for offshore wind energy took another step on Monday.
The Department of the Interior announced a deal with Duke Energy, which agreed to scrap its plans for a significant wind project off the North Carolina coast. In return, the company will receive a payment of $129 million. Critics may argue that this is like bribing Duke, but it’s actually just compensation for part of the company’s lease costs, consistent with federal rules. Fortunately for North Carolina, Duke has plans to reinvest this money.
“This settlement allows Duke Energy to refocus $129 million on ways to directly benefit customers and communities in the Carolinas,” said Kodwo Ghati Tagoe, CEO of Duke Energy Carolinas. “Under this agreement, these funds will be reinvested in new power generation capacity, which could include new nuclear and gas generation, as well as upgrades to our electric grid to enhance reliability and keep costs manageable.”
Duke aims to focus the funds on reliable power sources, rather than exposing ratepayers to the high costs stemming from subsidies given to offshore wind projects. This shift might not sit well with those public servants who were eager to champion the wind initiative.
Interior Secretary Doug Burgum highlighted that this move is beneficial for everyone. “President Trump’s goal of providing affordable and reliable American energy while prioritizing Americans is being realized,” said Burgum. He emphasized that Duke Energy can transform national security issues into projects that lower costs for customers in North Carolina and beyond. This agreement is a clear example of the Trump administration’s approach.
The arrangement with Duke Energy is just the latest in a series of similar agreements the Department of the Interior has made with offshore developers. Since early 2026, the DOI has actively engaged in unwinding early-stage offshore wind leases and reallocating funds to more reliable energy sources, part of its Energy Dominance Agenda. These transactions often involve repaying some lease payments while encouraging investment in natural gas, nuclear, and geothermal projects.
Earlier this year, TotalEnergy exited two large leases off New York and North Carolina, receiving around $928 million. The French energy firm has redirected those funds toward U.S. oil and gas production, as well as an LNG facility in Texas and projects in the Gulf of Mexico.
In mid-June of 2026, Invenergy abandoned four leases covering New York Bay and California’s coast, receiving $765 million. The company is also working on natural gas-fired power plants in several states and geothermal projects out West.
Additionally, Blue Point Wind and Golden State Wind contributed about $900 million collectively. By the time of the Duke Energy agreement, these cumulative deals amounted to around $2.7 billion.
In all these cases, companies voluntarily ended their leases, received compliant reimbursements, and chose to invest in stable power sources. The administration sees these moves as practical solutions aimed at diverting funding from subsidized projects toward affordable and reliable energy, enhancing grid stability and minimizing costs for consumers.
While this perspective holds some truth, there’s more complexity involved.
Biden’s coordinated effort to pull back the heavily subsidized offshore wind sector is part of a broader shift in federal energy policy this term. It represents a push for “American energy domination,” effectively reversing a long-standing energy strategy from the previous administration.
It’s clear that the direction America was heading was, deliberately or not, a path laid out by former presidents Biden and Obama. In contrast, President Trump and his team are focused on moving away from that.
