KEY POINTS
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The US DOT and MARAD withdraw or terminate funding for 12 offshore wind projects totaling $679 million.
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Projects described as “wasteful wind projects” by the US Department of Transportation Secretary.
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According to officials, the move shifts funding from renewable power to traditional energy, freight, port, and maritime infrastructure priorities.
The US Secretary of Transportation announced the cancellation of $679 million in previously awarded infrastructure grants, affecting 12 federally backed offshore wind projects.
Transportation Secretary Sean P. Duffy said in a statement on August 29, 2025, that the move will redirect taxpayer dollars away from what he described as “wasteful wind projects” and toward rebuilding America’s maritime industry, ports, and shipyards.
Impact on Construction
The federal funding announcement represents a shift for contractors and suppliers that had targeted offshore wind projects, with the possibility of delays or outright project cancellations. Whether the projects on the list move forward remains to be seen.
At least one developer, however, said its project would continue despite the pulled funding. Maryland Matters reported that the Sparrows Point Steel Marshalling Project would move forward despite the $47.3 million federal grant withdrawal.
The project aims to transform Baltimore’s Sparrows Point into a US offshore wind manufacturing and marshalling hub producing wind farm foundations and steel components.
US Wind, the Baltimore-based developer behind the $400 million project, said it would move ahead on developing nearly 100 acres of the former Bethlehem Steel mill site. The facility, the company said, will create hundreds of manufacturing jobs for the Baltimore region and supply steel for offshore wind and shipbuilding.
Further, the withdrawn or cancelled federal funding may be used for other commercial construction-related purposes or projects. The Secretary said in the announcement, “Where possible, funding from these projects will be recompeted to address critical port upgrades and other core infrastructure needs of the United States.”
The US DOT announcement framed the decision as part of a larger effort to “unleash traditional energy” and direct infrastructure funding toward core freight, port, and maritime priorities rather than wind power.
Breakdown of Funding Cancellations
As part of its review of discretionary grant programs, USDOT and its Maritime Administration (MARAD) identified projects that did not align with the administration’s priorities.
These projects were withdrawn from federal funding consideration according to the US Transportation Secretary announcement:
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Sparrows Point Steel Marshalling Port Project, $47,392,500
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Bridgeport Port Authority Operations and Maintenance Wind Port Project, $10,530,000
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Wind Port at Paulsboro, $20,494,025
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Arthur Kill Terminal, $48,008,231
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Gateway Upgrades for Access, Resiliency & Development at the Port of Davisville Project, $11,250,000
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Norfolk Offshore Wind Logistics Port, $39,265,000
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Humboldt Bay Offshore Wind, $426,719,810
Total Withdrawn Funding: $603,659,566
Projects with terminated federal funding, according to the announcement:
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Redwood Marine Terminal Project Planning, $8,672,986
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Salem Wind Port Project, $33,835,953
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Lake Erie Renewable Energy Resilience Project, $11,051,586
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Radio Island Rail Improvements in Support of Offshore Wind, $1,679,604
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PMT Offshore Wind Development, $20,000,000
Total Terminated Funding: $75,240,129
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