Climate Politics

 The $1 Billion Reverse-Subsidy: Taxpayers Paying to Stop Clean Energy

In a move that has stunned energy analysts and fiscal conservatives alike, the federal government has finalized a nearly $1 billion payout to the French energy conglomerate TotalEnergies. The purpose? To ensure that thousands of megawatts of offshore wind power never reach the American grid. This "pay-to-not-play" strategy represents a radical shift in national energy policy, moving beyond mere deregulation into the territory of active, taxpayer-funded deconstruction of the renewable sector.

The "Billion-Dollar Bribe"

The deal, finalized in early 2026, involves the federal government paying TotalEnergies $928 million to surrender valid leases off the coasts of New York and North Carolina. After the administration’s previous attempts to cancel these projects via executive order were tied up in federal courts, officials pivoted to a direct buyout. The administration has framed this as a measure to protect "national security" and "maritime commerce," claiming that the offshore wind projects were "unreliable and costly" to maintain. However, critics point out a glaring irony: the government is spending almost a billion dollars in public funds to prevent the private sector from lowering energy costs for over one million American homes.

Inverting Economic Logic

Typically, government subsidies are used to incentivize infrastructure that benefits the public. This payout does the opposite. By using taxpayer dollars to kill a project, the administration is effectively creating a "reverse-subsidy" for the fossil fuel industry. As noted in a joint letter from Congressional leaders, this payment doesn't just stop wind turbines; it provides a massive cash infusion to a foreign company that has already signaled it will reinvest the money into liquefied natural gas (LNG) export terminals in the Gulf Coast.

The Rhetoric of "Energy Dominance"

The administration defends the move under the banner of "Energy Dominance," arguing that the U.S. must prioritize traditional fuels to remain a global power. Yet, by actively sabotaging the domestic wind industry, the policy risks ceding the global "green tech" race to international competitors while leaving American taxpayers to foot the bill for the cancellation.

Do People Really Want to "Drill, Baby, Drill"?

 Throughout President Trump’s first and second administrations he has been devoted to expanding oil pipelines to lessen the United States’ reliance on other nations – this sentiment can be summarized by his slogan “drill, baby, drill.” There are many pipelines of note, but the two this blog will be looking at are in Canada and Alaska, respectively. The Keystone XL pipeline and the Artic National Wildlife Refuge (ANWR) pipeline. To understand why these pipelines are so important I will have to provide some background. 

TC Energy (then TransCanada) is a Canadian energy company that owns and operates the Keystone XL (KXL) pipeline. KXL has been operating since 2008 and since then it has been moving tar sands oil, the dirtiest oil in the business. KXL starts in Alberta, Canada and makes its way all the way to Houston, Texas. The area of interest is in the proposed extension to this pipeline that would add a cut through Montana instead of North Dakota. This extension was blocked in 2015 under former President Barack Obama, was reversed in President Trump’s first term, and then revoked when former President Joe Biden came into office. KXL faced opposition from the wide public (farmers, tribes, and conservation groups) and yet this did not stop Trump from advocating for the extension by falsely claiming the extension would create more jobs (full-time, permanent jobs would be at most 35 jobs added) and tar sands oil would be transported anyway (tar sands proved to be too costly to move by rail). After all of the loud opposition to this extension was heard, President Trump still tried to revive the project in 2025, but by that time TC Energy had pulled out due to the growing force against the project. 

 

Source: keystonexl.com 

The second pipeline of interest is the Arctic National Wildlife Refuge (ANWR) pipeline. This pipeline would go through the ANWR Coastal Plain, which is a critical ecosystem for caribou and polar bears, who are listed under the Endangered Species Act. This area is also used for subsistence foraging by Alaska Natives. Unfortunately, the Coastal Plain also houses 7.7 billion barrels of “technically recoverable” oil – the U.S. consumed 7.4 billion barrels in all of 2024. In 2021, under President Trump’s first administration, he allowed the land to be leased and sold to oil companies for drilling. When former President Biden took office he immediately halted the leases awarded; however, during President Trump’s second term, in 2025, lease contracts were back on the table. President Trump is adamant the U.S. opens more drilling sites and builds upon every pipeline (remember “drill, baby, drill”) but it seems not many people are sharing his sentiment. Oil companies have shown little interest (no bids were made for the 2025 leases) in endeavors that are clearly not favorable to the public. 

Source: Associated Press 

I use these two examples as they span throughout multiple administrations (KXL: Obama, Trump, Biden, Trump; ANWR: Trump, Biden, Trump) showing the changing sentiment towards more drilling for oil. I also wanted to highlight celebrations. President Trump wants the U.S. to use all the fossil fuel they can get their hands on even though scientists know and plead that not immediately halting the use of fossil fuels will undeniably lead to climate change that will likely lead to the sixth mass extinction, including humans. And though the president has a lot of power, these two examples show people have power too. Former President Biden’s term sandwiched between President’s first and second terms most definitely helped companies lose steam in chasing the extension of KXL and the drilling of ANRW, but it was also the outcry from the public that stopped companies from investing. Even though the companies only stopped because they didn’t want to face the public backlash and not because they ‘saw the light’ (of climate change) we have to take every win we can get. And this shows the misinformation President Trump spreads when talking about how people yearn to drill holds little power when compared to the power of the people and our voices.