The Trump administration has suspended leases for five large offshore wind projects already under construction along the U.S. East Coast, invoking national security concerns in a move that immediately rattled energy markets and intensified a widening confrontation with coastal states over energy policy and federal authority.
The decision, announced Monday by the U.S. Department of the Interior, affects projects developed by Ørsted, Dominion Energy, Equinor, Avangrid, and Copenhagen Infrastructure Partners. Together, the projects represent tens of billions of dollars in investment and were expected to supply power to roughly one million homes across several states beginning next year.
Shares of offshore wind developers fell sharply following the announcement, with Ørsted down more than 12 percent in early trading, underscoring investor unease over the durability of federal permitting once projects move from approval to construction.
A new use of national security authority
In its statement, the U.S. Department of the Interior said the pause follows concerns raised by the Pentagon that offshore wind turbines could interfere with radar systems used to detect and track potential threats. Officials cited the movement of turbine blades during construction and the reflectivity of turbine towers as possible sources of interference.
Interior Secretary Doug Burgum framed the decision as precautionary. “The prime duty of the United States government is to protect the American people,” he said, adding that the pause would allow agencies time to assess whether risks could be mitigated.
The administration has previously raised similar concerns, including claims that offshore wind could leave the United States vulnerable to drone-based attacks. The suspension applies while federal agencies work with leaseholders and state governments to review potential mitigation measures.
Projects approved, then paused
Industry groups and state officials responded by pointing out that all five projects had already undergone extensive national security review, including sign-off from the Department of Defense under previous administrations.
The National Ocean Industries Association said the halt undermines confidence in a regulatory process designed to provide certainty once projects clear federal review.
“Every project under construction has already undergone review by the Department of Defense with no objections,” said NOIA president Erik Milito, urging the administration to lift the pause quickly.
For developers, the timing is especially disruptive. Ørsted said its affected projects were in advanced stages of construction and had been preparing to begin delivering power next year. Dominion warned that halting Coastal Virginia Offshore Wind could threaten grid reliability for its customers, including military installations and data centers supporting artificial intelligence workloads.
“These electrons will power the datacenters that will win the AI race, support our war fighters, and build the nuclear warships needed to maintain our maritime supremacy,” the company said in a statement.
States push back, markets react
Governors and attorneys general in affected states signaled they are reviewing legal and regulatory options. Kathy Hochul accused the administration of using national security as a pretext to undermine clean energy development and the jobs tied to it, while Connecticut Attorney General William Tong said his office was assessing possible responses.
Democrats leading the Senate’s environment and energy committees warned that the offshore wind halt could derail broader permitting reform talks. Senators Sheldon Whitehouse and Martin Heinrich said they would not support bipartisan reform efforts unless the administration reverses what they described as “illegal attacks on fully permitted renewable energy projects.”
The standoff highlights growing tension between federal executive power and state-led energy strategies, particularly in regions that have built long-term climate and grid planning around offshore wind.
What this signals for U.S. energy permitting
President Donald Trump has long opposed offshore wind, arguing that turbines are costly, visually intrusive, and harmful to wildlife, while championing expanded oil and gas production. Since returning to office, his administration has repeatedly intervened in wind projects, including earlier stop-work orders that were later lifted following court action or political compromise.
For investors and developers, the latest suspension raises questions about the reliability of U.S. permitting even after projects clear regulatory hurdles and enter construction. Ørsted recently raised $9.4 billion to shore up financing for U.S. projects, citing uncertainty driven in part by federal hostility to wind power.
As agencies reassess the projects, the immediate issue is whether technical fixes can address the Pentagon’s concerns. The longer-term question, now confronting markets and states alike, is whether national security claims will become a standing tool to revisit infrastructure decisions once thought settled — and what that means for the future of large-scale energy investment in the United States.
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