Interior Raises Gulf of America Revenue-Sharing Cap for Coastal States 

Increase will boost funding for coastal protection, restoration and infrastructure

08/12/2025
Last edited 08/12/2025
Contact Information

Interior_Press@ios.doi.gov

WASHINGTON — As part of the One Big Beautiful Bill, the Department of the Interior today announced the annual revenue-sharing cap for Gulf of America Outer Continental Shelf energy revenues will rise from $500 million to $650 million beginning in fiscal year 2025 and continuing through 2034.  

The funds, generated from offshore oil and gas production, support coastal protection, restoration and infrastructure projects in Alabama, Louisiana, Mississippi and Texas, as well as the Land and Water Conservation Fund. 

“The Trump administration is committed to unleashing American energy, reducing reliance on foreign sources and strengthening coastal communities,” said Secretary of the Interior Doug Burgum. “This increase in revenue sharing rewards the states that power our economy and ensures they have the resources to build resilient infrastructure, protect their coastlines and grow local jobs.” 

Key Details: 

  • Cap Increase: From $500 million to $650 million annually for fiscal years 2025 through 2034
  • Gulf-Producing States: Receive 75% or up to $487.5 million annually. These funds support coastal protection, restoration and infrastructure projects. A portion is also shared with the states’ Coastal Political Subdivisions (counties and parishes).
  • Land and Water Conservation Fund: Receives 25 percent or up to $162.5 million
  • Increased Investment: Coastal states and communities will receive up to $150 million more each year, accelerating support for areas essential to American energy production 

Since 2009, federal law has directed a portion of Outer Continental Shelf energy revenues to Gulf states, their coastal political subdivisions and the LWCF. These disbursements are made in the year following revenue collection. 

The $500 million annual cap has been in place since 2016, with a temporary increase to $650 million during fiscal years 2020 and 2021 under the 2017 Tax Cuts and Jobs Act. 

Disbursements to the four Gulf-producing states and their CPSs are subject to sequestration requirements under 2 U.S.C. 901a(6)(B) and OMB Circular A-11, Section 100.4. 

For more information on revenue-sharing allocations and disbursements, visit doi.gov. 

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