Oil revenues fund coastal storm protection in new dedicated trust

What it does

This bill creates a dedicated federal trust fund for coastal storm protection projects, funded by $1 billion annually from oil and gas revenues (bonuses, rentals, royalties from the Outer Continental Shelf). The Army Corps of Engineers can use these funds to build, maintain, and repair hurricane and storm damage reduction projects along U.S. coasts, with annual reporting to Congress on how the money is spent.

Why we flagged it

The bill's core function is to establish a dedicated revenue stream and trust structure for coastal storm risk management projects. It is a funding and budgetary mechanism, not a regulatory or policy change, designed to ensure consistent federal investment in coastal protection.

What the text implies

• The $1B annual deposit is capped and does not scale with inflation or actual coastal protection needs; if coastal storm damage increases, the fund's purchasing power will decline over time.
• The bill requires the Secretary's annual budget request to equal the total projected fund balance, which may create pressure to spend available funds regardless of project readiness or cost-effectiveness.
• Coastal storm risk management projects must be 'specifically authorized by Congress,' which may slow project initiation and favor already-authorized projects over emerging threats.
• The fund's termination clause transfers unobligated balances to the general Treasury, creating an incentive to obligate funds before fiscal year-end even if projects are not ready.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Coastal residents and communities at risk from hurricanes and storms gain dedicated federal funding for protective infrastructure that would otherwise compete with other budget priorities. The funding mechanism (oil/gas revenues) does not impose new taxes on citizens, and the dedicated stream ensures consistent investment in a genuine public safety need.

Who stands to gain

• U.S. Army Corps of Engineers (increased budget authority and project funding)
• Coastal construction and engineering contractors (primary recipients of project contracts)
• Coastal communities and property owners (beneficiaries of storm protection infrastructure)

Named in the bill

U.S. Army Corps of Engineers, Secretary of the Army, Secretary of the Treasury, Office of Management and Budget, House Committee on Transportation and Infrastructure, Senate Committee on Environment and Public Works, Outer Continental Shelf Lands Act, Gulf of Mexico Energy Security Act of 2006, Balanced Budget and Emergency Deficit Control Act of 1985

Where it stands

3 cosponsors: 2 Republicans, 1 Democrats.

• Feb 10, 2026 — Introduced · Congress.gov: “Introduced in House”
• Feb 10, 2026 — Referred to House Committee on the Budget and House Committee on Natural Resources · Congress.gov: “Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Natural…”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 1 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $5,000 in lobbying spend. A filing names 5 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Jefferson Van Drew, the sponsor, reported $386,700 in PAC receipts in the 2026 cycle.

• American Public Works Association — $5,000 on 1 filing

Lobbying Disclosure Act filings through Jul 14, 2026. A filing shows who paid to lobby on a bill it names, not what changed.