The Trump administration has lifted a month-long halt on the $5 billion Empire Wind project off the coast of New York, allowing construction to resume on one of the largest offshore wind farms in the U.S.—but at a potential cost to environmental goals, as a previously blocked gas pipeline may now be back on the table.

The decision follows negotiations between President Donald Trump and New York Governor Kathy Hochul, who held three one-hour phone calls with Trump, including one on Sunday, according to The Washington Post.

“New York’s economic future is going to be powered by abundant, clean energy that helps our homes and businesses thrive,” Hochul said in a statement. “I fought to save clean energy jobs in New York – and we got it done.”

Norwegian energy giant Equinor, the developer behind the Empire Wind project, announced on Monday that work will resume immediately. The project is expected to power 500,000 homes starting in 2027 and create 1,500 jobs.

Interior Secretary Doug Burgum, who issued the original stop-work order on April 16, said the pause was lifted after Hochul agreed to support new gas pipeline capacity. “Americans who live in New York and New England would see significant economic benefits and lower utility costs from increased access to reliable, affordable, clean American natural gas,” Burgum wrote on X.

Environmentalists welcomed the wind project’s revival but expressed concern over the return of the gas pipeline plan, which was previously blocked in 2020 due to environmental concerns.

The move highlights a balancing act between clean energy expansion and fossil fuel interests in Trump’s second term.