After a difficult 2025, will offshore wind rebound in 2026?

By EPN Staff

In 2025, U.S. wind power experienced several setbacks, including loss of subsidies, restrictions on foreign-made parts and limits on permits and leasing. These setbacks likely will slow the growth of the energy sector for years to come, Reuters predicts.

President Donald Trump voiced skepticism at a post-inauguration rally that kicked off the year.

“We’re not going to do the wind thing. Big, ugly windmills, they ruin your neighborhood,” he said.

The year ended with the suspension of five massive construction projects off the eastern seaboard in December.

The administration paused Atlantic wind power construction because turbines and towers pose national security risks. The December decision caused stock shares for wind power companies Orsted, Dominion and Equinor to lose value, said Reuters. 

Why it matters

Large turbine blades and reflective towers create radar interference, which could obscure legitimate targets or create false targets, a U.S. Department of Interior statement explained. The suspension will allow the government to address potential national security risks. 

“Today’s action addresses emerging national security risks, including the rapid evolution of the relevant adversary technologies, and the vulnerabilities created by large-scale offshore wind projects with proximity near our east coast population centers,” said Secretary of the Interior Doug Burgum. 

A 2022 National Academies of Science, Engineering and Medicine report found offshore wind operations can cause significant electromagnetic interference to nearby radar systems. 

Connecticut Governor Ned Lamont, Massachusetts Governor Maura Healey, New York Governor Kathy Hochul and Rhode Island Governor Dan Mckee responded with a letter disputing the threat to national security. They claim the move is merely a pretext to “justify a predetermined outcome consistent with the President’s frequently stated personal opposition to offshore wind.” 

Additionally, Senate Democrats threatened to hold up bipartisan NEPA reform legislation unless the suspension ended.  

The bigger picture

In January 2025: 

• The administration paused new leases and permits for wind projects on federal lands and waters. 

In spring of that year: 

• The administration suspended work on New Jersey’s Atlantic Shores Offshore Wind project to examine the environmental impact. 

Later in the summer: 

• Congress phased out wind energy tax credits over the next two years in the One Big Beautiful Bill Act. The administration halted the Revolution Wind project in August, although the federal judge allowed construction to continue. A similar suspension on the construction of Empire Wind was lifted after New York’s governor agreed to a compromise and allowed the construction of a natural gas pipeline. 
• The administration began a study on the impact of turbines on bird mortality and launched a national security probe into imported wind turbine components. 
• The Department of Transportation canceled $679 million in federal infrastructure funding for offshore wind projects and rescinded a $716 million loan guarantee for a New Jersey offshore project.

In December 2025: 

• The U.S. Department of the Interior paused leases for Massachusetts’ Vineyard Wind 1, New York’s Empire Wind 1 and Sunrise Wind, Revolution Wind off Rhode Island and Coastal Virginia Offshore Wind. 

Additional details

The nation has 75,000 wind turbines according to the U.S. Geological Survey's wind turbine database most of which are located in the Central, Midwest, and North Eastern United States. About 10% of the nation’s electricity is produced from wind according to the Department of Energy. Offshore wind projects produce 1% of electricity.