The Norfolk Offshore Wind Logistics Port, also known as Fairwinds Landing, faces a significant setback as the U.S. Department of Transportation announced the withdrawal of over $39 million in federal funding. This decision comes despite work already being underway on the project, which aims to bolster the region’s offshore wind infrastructure. Additionally, $20 million allocated for the Portsmouth Marine Terminal (PMT) Offshore Wind Development Project has also been rescinded, despite the fact that those funds have already been spent.
U.S. Transportation Secretary Sean Duffy criticized the projects, claiming that federal resources are being misused. He argued that wind energy initiatives are diverting funds that could otherwise support the revitalization of America’s maritime industry. Duffy accused the Biden administration and Transportation Secretary Pete Buttigieg of prioritizing what he termed the ‘Green New Scam’ agenda at the expense of domestic shipbuilding and maritime infrastructure.
It remains unclear how much of the federal funds allocated to Fairwinds Landing have already been disbursed or how much must be returned. The Norfolk Economic Development Authority has expressed support for reconsidering the funding withdrawal, emphasizing that the project aligns with efforts to strengthen the local economy and support U.S. Navy shipbuilding requirements.
Mia Byrd Wilson, spokesperson for the Norfolk Department of Economic Development, highlighted that the revised scope of work submitted in mid-August aims to focus on rebuilding America’s maritime and shipbuilding sectors, aligning with the priorities of the Maritime Administration (MARAD). She noted that the project intends to utilize Port Infrastructure Development Program funds for critical upgrades.
The PMT project, valued at $223 million and completed in March, was designed to upgrade the terminal to serve as a staging area for offshore wind infrastructure, including Dominion Energy’s nearly $11 billion Coastal Virginia Offshore Wind project, which is now over halfway finished. The project received federal grants in 2022, which have now been rescinded.
Joseph Harris, spokesperson for the Port of Virginia, confirmed that the improvements at Portsmouth Marine Terminal are complete and that the facility is fully operational. He explained that the federal grant was instrumental in offsetting improvement costs, but the project was delivered on time and within budget, meaning there are no unobligated federal funds remaining.
Meanwhile, Dominion Energy’s offshore wind project, which is expected to generate 2.6 gigawatts and come online in 2026, was not funded by federal grants. John Larson of Dominion stated that the project is progressing as planned despite federal funding cuts.
At a recent Virginia Offshore Wind Authority meeting, officials reaffirmed their commitment to promoting offshore wind development as part of a broader energy strategy. Will Fediw, senior vice president of the Virginia Maritime Association, emphasized the importance of developing a balanced energy portfolio that includes renewables, natural gas, and nuclear options, especially given the shifting political landscape.
The broader political response includes strong statements from Virginia’s congressional delegation. Senators Tim Kaine and Mark Warner, along with Congressman Bobby Scott, criticized the administration’s decision, asserting that the withdrawal of funds undermines investments in maritime supply chains, port infrastructure, and shipbuilding—sectors vital to national security and economic strength.
They warned that halting these projects hampers efforts to achieve maritime dominance and could have negative repercussions for the local economy and national defense. The lawmakers pledged to collaborate with colleagues in Congress and regional partners to advocate for reversing the funding cuts.
This development underscores ongoing tensions between federal policy and regional economic interests, particularly in areas like Hampton Roads, where maritime and offshore wind industries are seen as key to future growth.