Trump pulls $40M Norfolk offshore wind project just months after Gov. Youngkin touted new Chesapeake subsea cable site for Virginia’s offshore wind future.

NORFOLK, Va. — The Trump administration has withdrawn nearly $40 million in federal funding for a Norfolk marine terminal project designed to support offshore wind, a move Virginia’s Democratic gubernatorial candidate says threatens jobs and economic growth in Hampton Roads.

The U.S. Department of Transportation (USDOT) revoked $39,265,000 previously awarded to the City of Norfolk to transform the Fairwinds Landing marine terminal into an offshore wind logistics hub. The facility was intended to serve the Coastal Virginia Offshore Wind project, the nation’s largest offshore wind development.

The funding was originally announced in late 2023. At the time, the City of Norfolk celebrated receiving more than $39.2 million in federal support to finance Fairwinds Landing’s transformation. 

City officials said the money would be used to renovate waterfront infrastructure and revamp three key components: offshore wind operations and maintenance, heavy lift operations, and cable loading operations. 

“This base will support the nation’s largest offshore wind project & anchor Fairwinds Landing’s redevelopment into a nationally significant maritime industrial center,” the city posted on social media at the time.

Transportation Secretary Sean P. Duffy said the cut is part of a broader shift in priorities, redirecting money from offshore wind projects to shipbuilding, port upgrades, and traditional energy development. Nationwide, USDOT and its Maritime Administration terminated or withdrew a total of $679 million for 12 offshore wind projects.

“Wasteful, wind projects are using resources that could otherwise go towards revitalizing America’s maritime industry,” Duffy said.

Democratic candidate for governor Abigail Spanberger (D-Va.) condemned the move, calling it a “sledgehammer approach” that harms Virginia communities.

“Not only is the Fairwinds Landing project set up to support Virginia’s nation-leading offshore wind industry, but also to create hundreds of new jobs and bring economic growth to Hampton Roads and communities across Coastal Virginia,” Spanberger said in a statement. “Virginia deserves a governor whose focus is on delivering for our communities, not kowtowing to a President who is willfully unraveling our Commonwealth’s economy.”

Spanberger added that the administration also attempted to rescind $20 million for upgrades at the Portsmouth Marine Terminal, but the Port of Virginia had already completed that project.

Meanwhile, Virginia continues to stake its economic future on offshore wind. Just in late April, Gov. Glenn Youngkin attended and celebrated the purchase of nearly 100 acres of land in Chesapeake for a subsea power cable manufacturing facility.