California and New York have taken legal action against the Trump administration over its decision to buy back offshore wind leases and cancel renewable energy projects. The states argue that this move could hinder clean-energy progress and lead to higher electricity costs.

California Attorney General Rob Bonta filed a lawsuit following the federal government’s announcement to buy back leases, affecting four offshore wind projects planned by Chicago-based Invenergy along the US East and West coasts. Meanwhile, New York Attorney General Letitia James spearheaded a coalition of states challenging agreements involving Invenergy and Bluepoint Wind, which would offer payments to energy companies to halt their offshore wind developments.

The Trump administration has allocated billions of dollars to persuade companies to abandon renewable energy initiatives. The Interior Department has justified these buyback agreements, stating that companies are pivoting toward fossil fuels and other energy sources deemed more reliable.

James has criticized the agreements as unlawful, emphasizing that canceling wind projects could complicate efforts to meet growing electricity demands. Similarly, Bonta has affirmed California’s commitment to advancing clean-energy projects despite the federal policy changes.

This legal confrontation underscores a deepening dispute between the Trump administration and several states over the trajectory of offshore wind development and the broader US energy transition.