Trump administration aims to stop offshore wind development on national security grounds, creating legal uncertainty for US project finance
The Trump administration has been working to halt offshore wind development in the United States on the basis that it poses a national security risk, a policy pursued since late 2025. The legal battle came into focus when a court ruling by Judge Lamberth put the Revolution Wind project, serving Rhode Island and Connecticut, back on track in January, finding that the government had not applied its newly asserted national security concerns specifically to that project. The judgment noted that BOEM (the Bureau of Ocean Energy Management, the US federal agency that manages offshore energy licensing) had waited until December to act on information received in November, and that Secretary Burgum had publicly criticised offshore wind for reasons unrelated to national security around the time of a stop-work order. The administration's strategy of invoking national security grounds creates a contested legal framework for offshore wind permitting: developers and lenders must assess whether project approvals can be revoked on grounds that courts may find inadequately particularised. While this story is US-focused, the legal risk model has direct relevance for UK and European developers and their lenders who finance US offshore wind assets, and for English-law governed project finance documentation that includes regulatory risk protections.
Why this matters
The use of national security justifications to challenge offshore wind licences introduces a category of regulatory risk that is difficult to price into project finance models. Lenders and developers drafting English-law project finance agreements for US-sited assets will need force majeure and material adverse change (MAC) clauses that contemplate licence revocation on non-technical grounds. The Revolution Wind ruling suggests that courts will scrutinise whether national security rationales are applied consistently and specifically to the project in question, which limits but does not eliminate the risk. For UK and European energy lawyers, the US policy environment also affects global capital allocation to offshore wind and the appetite of international banks to lend into US projects.
On the Ground
A trainee on an offshore wind project finance matter would review grid connection agreements and regulatory filing documentation, summarise licence conditions and any stop-work orders affecting the project, and assist with coordinating local counsel opinions on the enforceability of existing consents.
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Question you might get
“How should a project finance lawyer structure risk protections in an offshore wind facility agreement to account for the possibility that a US regulatory licence could be revoked on national security grounds?”
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