A major U.S. offshore wind project stalled by the Trump administration has been given the green light to resume construction following a significant federal court ruling. Dominion Energy Inc. can restart work on its massive $11 billion wind development off the coast of Virginia while its legal battle against a government stop-work order continues.
Judge Cites "Irreparable Harm" and Millions in Daily Losses
United States District Judge Jamar Walker in Norfolk, Virginia, issued a preliminary injunction on Friday, January 16, 2026, blocking the government from enforcing its order to halt the project. The judge, appointed by former President Joe Biden, ruled that Dominion was suffering irreparable harm and losing millions of dollars daily while construction was idle.
Dominion stated in court filings that it was losing approximately US$5 million per day on vessel contracts alone, with additional costs from idled workers and contractual penalties. The company has already spent over two-thirds of the project's total expected cost of US$11.2 billion. The wind farm, once completed, is designed to provide power for up to 660,000 homes.
A Pattern of Legal Victories for Offshore Wind
Judge Walker's decision marks the third such ruling in a single week, creating a trend of judicial pushback against the administration's suspension of wind projects. He found that the U.S. Department of the Interior failed to demonstrate that the cited national security risk was "so imminent" as to justify halting construction. The judge further stated the department's December 22 order, which suspended five East Coast projects for 90 days, was likely arbitrary and capricious.
Earlier in the week, other federal judges issued similar injunctions. One allowed Norway’s Ørsted A/S to resume work on its project off Rhode Island, while another permitted Equinor ASA to continue its Empire Wind development near New York. All these companies are part of a collective lawsuit against the Interior Department over the sweeping suspension order.
Broader Challenges for the U.S. Wind Industry
The legal battles occur against a backdrop of significant headwinds for the American offshore wind sector. The industry has grappled with soaring inflation, supply chain disruptions, and rising costs from new tariffs implemented by the Trump administration. These combined pressures have led to widespread project cancellations, delays, and financial writedowns across the country.
President Donald Trump has actively sought to roll back Biden-era climate policies and champion fossil fuels. On his first day back in office, he froze permitting for all wind projects on federal land and oceans, though a separate federal judge later ruled that decree illegal. The White House did not immediately comment on Judge Walker's latest decision.
The market reacted positively to the news, with Dominion shares rising 0.6 per cent following the ruling to touch an intraday high of US$61.50. The court's action provides a temporary but crucial reprieve for one of the nation's largest renewable energy investments, signaling that the judiciary may serve as a check on executive actions perceived as economically damaging to the clean energy transition.
