The administration announced the cancellation of federal funding of 679 million dollars for 12 offshore wind projects, including the cancellation of 427 million dollars for a major project in California. The step represents another blow to an industry that was at the center of the climate and energy agenda of the previous administration.
In an official statement from the Department of Transportation it was noted that the funds granted by the previous administration were wasteful and could instead be directed to restoring the maritime industry. According to the statement, wind projects use resources that could be used differently to revive the maritime industry. The administration is prioritizing real infrastructure improvements over expensive wind projects that offer little.
One of the central projects canceled was the construction of a new maritime center in Humboldt County, California. According to the original plan announced last year with a grant of 427 million dollars, the center was intended to be the first of its kind on the Pacific coast and serve as an assembly hub for wind turbines. A spokesperson for California criticized the move and described it as an attack on clean energy and infrastructure projects that harms businesses, eliminates jobs in rural areas and damages economic development.
Other notable cancellations include a 47 million dollar grant to build a logistics center for wind turbine production near the port of Baltimore in Maryland, and a 48 million dollar grant for a wind turbine terminal project on Staten Island in New York that was awarded in 2022. Another canceled grant of 33 million dollars was intended for a project at the port of Salem in Massachusetts to convert an abandoned industrial facility for use in offshore wind energy. According to local officials, the cancellation will cost around 800 construction jobs. They stated that the real waste is that the administration is canceling tens of millions of dollars for a project already underway that was meant to increase the energy supply.
The current move joins a series of cancellations and controversial steps by the administration against green infrastructure projects. Among other actions, the administration canceled large grants for a high speed rail project in California and other environmental infrastructure initiatives. Last week the administration announced a freeze on additional offshore wind projects off the coasts of Rhode Island and Connecticut, stating that they needed to be reexamined due to security concerns.
Government agencies in the United States, including the Departments of Defense, Energy and Commerce, are now reviewing all offshore wind farms approved by the previous administration along the Atlantic coast, and estimates suggest there may be more cancellations in the near future.