The U.S. Department of Transportation has withdrawn nearly $427 million in grant funding from the Humboldt Bay offshore wind project, complicating plans for what would have been the first offshore wind terminal on the Pacific Coast.
The grant was originally awarded in 2024 under the Biden administration through the Infrastructure for Rebuilding America program. The Trump administration later rescinded the money from Humboldt and 11 other offshore wind projects, totaling $679 million.
The Humboldt project was slated to build the Offshore Wind Heavy Lift Terminal, designed for the assembly, launch and maintenance of floating offshore turbines. The turbines would be deployed in the Humboldt Wind Energy Area, a 206-square-mile zone about 20 miles off California’s North Coast. Federal energy officials estimate the project could power more than 561,000 homes.
The terminal site is a former lumber mill property now designated as a brownfield. Chris Mikkelsen, executive director of the Humboldt Bay Harbor District, said the project would redevelop vacant land while cleaning up contamination.
The Department of Transportation said the rescinded funds would be redistributed “to address critical port upgrades and other core infrastructure needs of the United States.”
“That is exactly what our project proposes to do,” Mikkelsen said.
In addition to building the first offshore wind terminal on the Pacific Coast, the project was expected to improve port access by paving new roads, expanding docking space and installing solar power for port operations.
“It’s an absolute home run,” Mikkelsen said. “Why would we not get behind a project like that?”
Rep. Jared Huffman, D-Calif., criticized the decision in a statement, calling the grant cancellation “a new level of idiocracy.”
“The Humboldt project in my district shows what’s possible when we put people over polluters," Huffman said. "For a small, rural community, it means jobs, affordable and clean power for millions, and Tribes getting a seat at the table and share of the benefits."
The Maritime Administration also ended a $20 million Port Infrastructure Development Program grant for the project. The money had been designated for planning and design work.
Despite these losses, Mikkelsen said he hopes the state of California will step in to fill the funding gap.
“We made a commitment to a lot of people to deliver something much greater than ever imagined in our community,” Mikkelsen said. “And so we need to get to work, and keep the commitment we made to the folks of Humboldt County.”
