Interior Dept. Disburses Record $460.9M to Gulf States

Funds will support infrastructure, restoration, and local economies in energy-producing regions

Mar. 28, 2026 at 1:34am

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The U.S. Department of the Interior announced a record $460.9 million in energy revenue disbursements to the four Gulf of America energy-producing states - Alabama, Louisiana, Mississippi, and Texas - along with their coastal counties and parishes. This marks the largest such disbursement ever made, reflecting changes in the Working Families Tax Cuts Act that raised the statutory cap to states.

Why it matters

The disbursement underscores the federal government's focus on expanding American energy production, strengthening U.S. energy independence, and ensuring coastal communities see direct benefits from offshore development. By reinvesting offshore energy revenues directly into the regions that host this development, it reinforces the long-term stability of the Gulf energy sector and supports critical infrastructure, restoration work, and local economies.

The details

The revenue-sharing model for Gulf states to receive a portion of the funds generated from leasing in the Outer Continental Shelf of the Gulf of America was established by 43 U.S.C. §1331 (note 2017), which also directs a percentage of revenue to the Land and Water Conservation Fund (LWCF). This year's distribution reflects a major increase through President Donald J. Trump's Working Families Tax Cuts Act, which raised the statutory cap to states from $375 million to $487.5 million per year beginning with the fiscal year 2025 revenues.

  • The disbursement reflects fiscal year 2025 revenues.
  • The Working Families Tax Cuts Act increased the disbursement cap to the Land and Water Conservation Fund, which occurred during FY 2025 and totaled $162.5 million.

The players

Department of the Interior

The U.S. federal executive department responsible for the management and conservation of most federal land and natural resources.

Donald J. Trump

The 45th President of the United States, who signed the Working Families Tax Cuts Act that raised the statutory cap for energy revenue disbursements to Gulf states.

Doug Burgum

The Secretary of the Interior, who oversees the department's disbursement of offshore energy revenues to Gulf states and their coastal communities.

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What they’re saying

“This record disbursement demonstrates President Trump's commitment to responsible energy development that strengthens America's energy security while directly investing in the communities that power it.”

— Doug Burgum, Secretary of the Interior

What’s next

The Department of the Interior will continue to disburse offshore energy revenues to the Gulf states and their coastal communities on an annual basis, with the statutory cap increasing to $487.5 million per year starting in fiscal year 2025.

The takeaway

This record-breaking disbursement of offshore energy revenues to the Gulf states and their coastal communities underscores the federal government's focus on supporting the long-term stability and growth of the region's energy sector, while also investing in critical infrastructure, restoration efforts, and local economies that depend on these natural resources.