The Trump administration has dropped its legal challenge against a court ruling that overturned a federal freeze on wind energy projects. The U.S. Court of Appeals for the First Circuit dismissed the appeal following a voluntary motion by the Justice Department. This decision upholds a December 2025 ruling by Judge Patti Saris, which declared the administration’s executive order halting wind permitting and leasing to be unlawful and arbitrary. The development marks a significant legal victory for a coalition of 17 states and Washington, D.C., that had challenged the administration’s efforts to impede the national energy transition.
This legal setback for the White House coincides with a period of growth for the clean energy sector, despite ongoing policy hurdles. A report from the Environmental Defense Fund and Atlas Public Policy indicates that 79.7 GW of clean power is projected to come online in 2026. Currently, the U.S. has 471 GW of clean energy capacity, with solar and battery storage systems representing 85 percent of the planned project pipeline. Developers have announced plans to invest approximately $377 billion in new projects through 2031, reflecting a strong long-term outlook for the industry.
The administration also faced a recent defeat regarding tax incentives. On June 6, a federal court in Washington, D.C., overturned an August 2025 treasury rule that had restricted how wind and solar developers accessed federal tax credits. Judge Colleen Kollar-Kotelly ruled that the administration failed to provide a sound justification for changing the long-standing “5 percent” rule, which allowed developers to secure credits based on initial project expenditures. While clean energy continues to expand, the report noted a simultaneous rise in natural gas capacity, which increased by 20.7 GW in the first quarter of 2026.