On March 27, 2025, the Department of the Interior announced the distribution of approximately $353.6 million in energy revenues to four Gulf of America oil and gas-producing states: Alabama, Louisiana, Mississippi, and Texas. This disbursement also extends to their coastal political subdivisions, including counties and parishes. Since 2009, the Interior Department has shared $2.35 billion with these states and their subdivisions. The funds, disbursed annually, stem from offshore oil and gas production and are intended to support coastal protection, restoration, and infrastructure projects.
The Gulf of America plays a crucial role in helping the United States achieve Energy Dominance by sourcing energy domestically, with an average of 58% of oil production on federal lands and waters originating from this region.
The revenue-sharing model that allows Gulf states to receive funds generated from leasing the Outer Continental Shelf in the Gulf was established by 43 U.S.C. §1331 (note 2017). This statute also directs a percentage of the revenue to the Land and Water Conservation Fund.
Funds disbursed to the states and their subdivisions include $49,824,818.12 to Alabama and its subdivisions, $156,312,661.60 to Louisiana and its subdivisions, $51,909,530.76 to Mississippi and its subdivisions, and $95,539,986.21 to Texas and its subdivisions. Disbursements to the four Gulf states and their coastal political subdivisions are subject to a revenue-sharing cap of $375 million annually, as well as sequestration requirements outlined in 2 U.S.C. 901a(6)(B) and OMB Circular A-11, Section 100.4.
Detailed information about revenue-sharing allocations and disbursement is available on the Department of the Interior's website.
