Offshore Offensive

This Week's Trend In Brief:

• Last week, President Trump canceled $679 million in federal funding for offshore wind projects, a reminder that the operating environment no longer has the generous support companies enjoyed under President Biden.

   

• Governors and industry leaders are once again appealing to Trump using his own “America First” language on jobs and energy security, but the arguments are failing to gain traction, just as they fell on deaf ears during the One Big Beautiful Bill Act debate.

   

• The Trump Administration’s decision to rescind the funding is less about economics than politics, as companies tied to the Biden-era renewable agenda now find themselves on the losing side of a partisan battleground they can’t avoid.

   

• For firms that were seen as aligned with Biden’s “whole-of-government” climate push, the challenge is not simply a changed policy landscape in Washington but being tagged blue – fairly or unfairly – in a red-versus-blue culture war that far outweighs rational arguments about jobs and investment.

   

• Companies that understand this shift – and adjust their strategies to navigate a partisan environment where symbolism often outweighs substance – will be better positioned to advance their priorities amid shifting politics.

Digging Deeper:

Last week, the Trump Administration announced the cancellation of $679 million in federal funding for offshore wind projects, marking a sharp reversal from Biden-era support. U.S. Transportation Secretary Sean Duffy, who announced the decision, argued that “wasteful wind projects are using resources that could otherwise go towards revitalizing America's maritime industry,” suggesting instead that the funding could be redirected to “address critical port upgrades.” The cancellation did not come as a surprise – President Trump and his administration have long made renewables a political target, treating wind and solar less as economic projects than as symbols of Biden-era priorities. Companies hoping to navigate this latest policy shift with their interests intact must understand the dynamics at play – or risk being sidelined in political fights that will define industry’s future.

Officials and industry advocates are using Trump’s own “America First” language on jobs and energy security, but those arguments are failing to gain traction. On Labor Day, five East Coast governors penned an open letter to Trump urging him to reverse the cuts, using the holiday to highlight the workforce at the center of offshore wind development. They celebrated “the strength, skill and determination of America’s workers,” declaring that “nowhere is that clearer than in the offshore wind industry,” where more than 5,000 workers are already building “this new American industry, with many thousands more manufacturing products across 40 states that will help lead to a new era of U.S. energy independence.” The governors’ pitch mirrors others that we have previously noted, where those hoping to preserve Biden-era climate policies have used Trump’s own “America First” rhetoric to defend Biden-era clean energy policies. While the governors and other advocates argue that renewable energy is a natural extension of Trump’s “energy dominance” agenda, the approach has yet to gain traction with an Administration driven more by political identity fights than by economic arguments.

Indeed, Trump and senior officials show little indication of being swayed, casting offshore wind and renewables as symbols of Biden-era policies they are determined to dismantle in a broader partisan fight. Offshore wind has become a recurring target for Trump, who recently claimed that “it destroys everything,” “looks horrible,” and is “a very expensive form of energy.” He declared, “We are not doing wind. We are going back to fossil fuel.” Trump has repeatedly deemed “disastrous offshore wind” a part of Biden’s “Green New Scam,” which his Administration has vowed to end by rescinding billions in climate funding. Meanwhile, U.S. Energy Secretary Chris Wright contended that heavy federal spending on renewable energy is “nonsensical,” while Duffy characterized the projects as “doomed.” Even as advocates promise that offshore wind can deliver “cheap, reliable power” and bolster U.S. leadership, the latest cuts underscore an Administration increasingly uncompromising as it advances Trump’s vision for the nation’s energy future – one where appeals to jobs and investment are unlikely to overcome the culture war dynamics now defining the debate.

Now, companies that were seen as aligned with Biden’s “whole-of-government” climate push are facing a new challenge, not just a changed policy landscape in Washington but being tagged – fairly or unfairly – on the blue side of a red-versus-blue debate. U.S. Rep. Mariannette Miller-Meeks (R-IA) captured the contrast while defending “the sharp energy policy shift under Trump.” She described the Biden years as a “very permissive” environment, where officials would “bend over backward to try to make you successful, no matter how much it costs.” In contrast, she argued that presently, “We’re trying to undo four years of bad energy policy.”  Her remarks highlight the larger reality that today’s debate over renewables is not simply about reversing policy but about positioning in a partisan fight that neither side is approaching with economic rationality. For companies that spent those years aligning their portfolios and investments to Biden’s vision for the energy future, it is essential to understand that you are now operating in a political arena where outcomes are shaped less by economic logic than by partisan identity.

For companies navigating this reality, safeguarding priorities will require more than economic arguments – it will demand a sharp understanding of the political environment and the identity-driven debates shaping it. Efforts to repackage renewables in “America First” terms show how advocates are trying to adapt, but they also reveal the limits of arguing within a partisan fight where Trump has already defined the terms. Success for energy firms will depend on distinguishing between strategies that genuinely advance their interests and those that risk being dismissed as part of the “Green New Scam.” To do that, public affairs professionals across the energy industry need a playbook that anticipates political currents, navigates cultural flashpoints, and keeps companies ahead of battles that are moving faster than policy itself.

Trends in Energy is your weekly look at key trends affecting the energy industry, brought to you by the competitive intelligence experts at Delve. As the political and regulatory landscape continues to shift, reach out to learn how our insights can help you navigate these challenges.