KEY POINTS
- Judge rules Biden’s cancellation of Alaska oil leases unlawful.
- Ruling could pave the way for drilling in the Arctic refuge.
- Alaska’s economy gains from decision to reinstate oil leases.
A federal judge ruled that the Biden administration lacked the authority to cancel oil and gas leases issued for the Arctic National Wildlife Refuge (ANWR).
In a decision on March 25, 2025, U.S. District Court Judge Sharon Gleason in Anchorage sided with the Alaska Industrial Development and Export Authority (AIDEA) in a lawsuit that challenged the Interior Department’s decision to cancel leases granted for oil and gas exploration in the Arctic National Wildlife Refuge.
The ruling could have significant implications for the Biden administration’s efforts to protect the 19-million-acre refuge, which is home to species like polar bears and caribou.
According to Reuters, the Trump administration had previously opened the refuge’s Coastal Plain to drilling in 2017 as part of the Tax Cuts and Jobs Act.
In 2023, just before Biden took office, AIDEA had secured leases covering 365,775 acres of the Coastal Plain, which the agency claimed were legally issued and should not have been canceled.
The leases were initially secured under the Trump administration, but Biden moved to block the drilling following his promise to protect the refuge.
Judge’s decision could reverse cancellation of oil and gas leases
The decision made by Judge Gleason creates a win for Alaska’s economic landscape, as AIDEA demonstrated how the Biden administration failed to follow the 2017 law permitting drilling in the refuge.
Judge Gleason observed that the Interior Department broke necessary legal protocols to cancel leases according to the specifications of the 2017 tax bill.
With this ruling Republicans have gained momentum to advocate for the reopening of the Arctic Refuge to oil and gas development which would reverse environmental initiatives introduced by President Biden.
Following an executive order from President Trump to resume drilling in the Arctic Refuge, the Department of Interior spokesperson declared the department will restart the canceled leases promptly.
Legal battle could impact future oil exploration efforts
This decision stands as part of an ongoing court dispute about Arctic oil exploration which has remained deeply controversial for years.
Environmental groups fight drilling in the refuge while energy industry supporters insist the United States must boost domestic energy output.
The decision now awaits further action from the Interior Department as it seeks to reinstate the leases. Additionally, it could reignite efforts to push for more oil drilling in the Arctic, a strategy heavily promoted by Trump’s administration.
