Six states filed a lawsuit Tuesday against the Trump administration challenging a federal decision to pay nearly $1 billion in taxpayer funds to terminate major offshore wind projects.

The lawsuit targets a deal announced in March by federal officials to pay French energy company TotalEnergies approximately $1 billion to cancel plans for two offshore wind farms off the coasts of New York and North Carolina. The state attorneys general argue the agreement is unlawful.

Under the terms of the deal, TotalEnergies agreed to terminate the existing projects and committed not to develop any new offshore wind projects in the United States. In exchange for receiving the federal payment, the company pledged to invest hundreds of millions of dollars in oil and gas projects instead.

The agreement effectively removes a major offshore wind lease that had been planned for waters off New York's coast. The deal represents a significant shift in federal energy policy, moving resources away from renewable energy development toward traditional fossil fuel projects.

The six states bringing the legal challenge have not been specifically identified in available reporting. The lawsuit comes as the Trump administration has pursued policies favoring oil and gas development over renewable energy initiatives.