The shift means construction can resume on the Empire Wind project, which is designed to deliver energy to Brooklyn, said statements from Hochul and Norwegian company Equinor.
Hochul thanked President Donald Trump, saying in a statement that called Empire Wind a "critical project" in terms of jobs and clean power.
"New York's economic future is going to be powered by abundant, clean energy that helps our homes and businesses thrive," Hochul said.
"We appreciate the fact that construction can now resume on Empire Wind, a project which underscores our commitment to deliver energy while supporting local economies and creating jobs," said Equinor CEO Anders Opedal.
Officials with the Department of Interior did not immediately respond to an AFP request for comment.
Interior Secretary Doug Burgum announced in mid-April that his department was ordering construction "immediately" halted until further review, saying predecessors in the administration of former president Joe Biden had not performed "sufficient analysis" on the project.
Shortly after returning to the White House for a second term in January, Trump signed a series of executive orders bringing the wind energy sector to a standstill, including a temporary freeze on federal permitting and loans for offshore and onshore wind projects.
Valued by Equinor at $2.5 billion, the Empire Wind 1 project includes 54 turbines designed to deliver 810 megawatts of energy into Brooklyn, powering 500,000 homes.
An Equinor Spokesman told AFP last week that the company might abandon the project if a solution were not found soon.
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