NY AG Letitia James Sues Trump Admin Over TotalEnergies Deal, Calls It A 'Sham' That Destroys Union Jobs (UPDATED)

Editor’s note: The story has been updated to include a comment from a spokesperson from DOI.

New York Attorney General Letitia James said on Tuesday that New York State would be suing the Donald Trump administration over the latter’s deal with French energy company TotalEnergies SE (NYSE:TTE).

Trump’s ‘Sham Deal’

In a post on X, James delivered sharp criticism of Trump, saying that the administration had “struck a sham deal with TotalEnergies,” adding that the deal was coming at the expense of a New York offshore wind project that would end.

James said that New York is suing the Trump administration to stop the “illegal deal that harms our planet and destroys union jobs.”

The Trump administration struck a sham deal with TotalEnergies, a foreign energy company, to end a New York offshore wind project and invest millions in oil and gas.

We're suing with @GovKathyHochul to stop this illegal deal that harms our planet and destroys union jobs.

— NY AG James (@NewYorkStateAG) June 2, 2026

The TotalEnergies Deal

According to a statement by the AG’s office, the deal refers to the Trump administration giving nearly $1 billion to divest from offshore wind projects in favor of fossil fuels.

The statement also said that the administration made TotalEnergies “pledge not to develop any new offshore wind projects in the United States.”

Attentive Energy, the TotalEnergies subsidiary at the center of the deal, paid “$795 million to purchase an offshore wind lease approximately 47 miles off the coast of New York,” the statement said.

The U.S. Department of Interior had reached a deal with the French energy company in March, with an official statement saying that the company would be investing in a Liquefied Natural Gas (LNG) plant in Texas, as well as a project in the Gulf of Mexico.

The U.S. Department of Interior didn’t immediately respond to Benzinga‘s request for comment.

James is joined by the Attorneys General of states like New Jersey, Connecticut, Maine, Vermont, Massachusetts and Rhode Island in the lawsuit against the administration. The suit has been filed in the U.S. District Court for the District of Columbia.

DOI Responds

Following Benzinga's request for comment, a spokesperson for the Department of the Interior responded, saying that the process followed to procure the offshore wind leases under former President Joe Biden was the only "blatantly unlawful" thing.

"Billions of dollars were effectively taken from the pockets of hardworking taxpayers and funneled into energy projects that were not only unreliable, but also unaffordable," the spokesperson said, adding that the Department of War had also identified "serious national security risks" with the project.

"These settlements were reviewed and approved by the Department of Justice, underscoring that they went through the appropriate channels," the spokesperson said. "This administration will not sit back and let reckless projects create higher utility costs," and a "weakened energy system," as well as cause "unnecessary harm to the environment."

Gavin Newsom Slams Sable Offshore Corp Deal

Gov. Gavin Newsom (D-CA) had earlier criticized Trump’s decision to restart the Sable Offshore Corp (NYSE:SOC) pipeline off the Santa Barbara coast in California, which was at the center of controversy following a 2015 oil spill that caused significant environmental damage.

The pipeline will reportedly supply oil to Chevron Corp (NYSE:CVX), which was again criticized by Newsom as he urged California residents to avoid overpaying at the pump for name-brand gas.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

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