Sponsors (4)
The bill creates a dedicated $1 billion/year coastal resilience Trust Fund that strengthens planning, transparency, and protections for coastal communities while shifting federal OCS revenue toward those goals—improving project funding predictability but raising fiscal pressure on taxpayers and exposing projects to revenue volatility and budget-enforcement-driven delays.
Coastal communities (urban, rural, and local governments) gain a dedicated $1 billion per year stream for storm risk reduction and resilience projects, increasing construction and upkeep of protections against hurricanes, erosion, and sea-level impacts.
The Trust Fund’s investment earnings grow available resources over time, allowing more or longer-term projects to be supported without immediate additional appropriations.
The legislation protects existing conservation and Gulf of Mexico funding streams by explicitly preventing reductions to the Land and Water Conservation Fund (LWCF) and Gulf of Mexico Energy Security Act allocations.
Dedicating $1 billion per year from Outer Continental Shelf (OCS) receipts reduces amounts available to the general Treasury, increasing fiscal pressure on taxpayers and other federal programs and potentially worsening the deficit or requiring offsets.
Because the funding stream is tied to OCS oil and gas receipts, revenues can fluctuate with market and production cycles, creating uncertainty for long-term coastal planning and project continuity.
If the Trust Fund is terminated, any unobligated balances would revert to the general fund, risking the loss of dedicated coastal resources before projects are completed.
Based on analysis of 4 sections of legislative text.
Introduced February 10, 2026 by Jefferson Van Drew · Last progress February 10, 2026
Creates a dedicated Treasury trust fund that receives $1 billion each fiscal year from Outer Continental Shelf receipts and uses those monies (and earnings) to fund the federal share of U.S. Army Corps of Engineers coastal storm risk management projects. The fund is administered by the Treasury, invested until needed, and its amounts are available only when Congress makes them available in appropriations acts. The bill also requires yearly reporting on deposits, obligations, and balances and changes federal sequestration rules so Corps appropriations drawn from this fund and designated for coastal storm risk projects are counted in sequester/adjustment calculations. The measure preserves existing deposits to the Land and Water Conservation Fund and certain Gulf of Mexico Act amounts and provides that any unobligated balances on termination revert to the Treasury general fund.