The Department of the Interior announced on Mar. 27 a record disbursement of $460.9 million in energy revenue to the four Gulf of America energy-producing states—Alabama, Louisiana, Mississippi, and Texas—and their coastal counties and parishes.
This increase is significant because it provides more funds directly to the communities that support offshore energy production. The additional revenue is intended to strengthen local economies, support infrastructure projects, and help with restoration efforts in these coastal regions.
The higher distribution this year results from President Donald J. Trump’s Working Families Tax Cuts Act, which raised the statutory cap for state disbursements from $375 million to $487.5 million per year starting with fiscal year 2025 revenues. According to Secretary of the Interior Doug Burgum, "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." Burgum also said, "By returning offshore revenues to the Gulf region, we are supporting the infrastructure, restoration work and local economies that make continued production possible. These investments reflect a long-term vision for American Energy Dominance that expands opportunity, protects vital coastal resources and ensures the Gulf of America remains a cornerstone of our nation’s economic strength."
The Department explained that reinvesting offshore revenues helps maintain both economic activity and ecological systems along the Gulf coast by supporting infrastructure for offshore operations as well as tourism and fisheries industries.
Revenue-sharing for these states was established by federal law (43 U.S.C. §1331 note 2017), which also directs part of these funds toward the Land and Water Conservation Fund (LWCF). The Working Families Tax Cuts Act increased LWCF's share as well; during fiscal year 2025 this amounted to $162.5 million.
Disbursements are subject to an annual cap of $487.5 million under current law and sequestration requirements outlined in federal budget guidance documents.
