Gulf counties receive more than $92 million in revenue sharing from offshore energy projects
Author
Charlotte Mitchell Duyshart
Andrew Nober
Upcoming Events
Related News
Key Takeaways
On March 27, the U.S. Department of the Interior (DOI) announced hundreds of millions of dollars in revenue sharing from Gulf energy projects, including more than $92 million which will be distributed directly to 42 coastal counties and parishes and Texas, Louisiana, Alabama and Mississippi. The revenue is generated from offshore oil and gas projects on the federally managed Gulf Outer Continental Shelf, and a portion is redirected to states and counties.
Background
Since 2007, the Gulf of Mexico Energy Sharing Act (GOMESA) has directed a portion of federal revenues from oil and gas projects in the Gulf to Texas, Louisiana, Mississippi, Alabama and coastal counties within those states. Counties in Florida do not receive GOMESA revenue due to Florida’s moratorium on offshore drilling. GOMESA also directs some funding to the Land and Water Conservation Fund.
Under the One Big Beautiful Bill Act (OBBBA; P.L 119-21), the cap on revenue available to be shared with states and counties was raised to $487.5 million for fiscal years (FYs) 2025 - 2034. For FY 2026, Interior announced that a total of $460.8 million would be distributed through GOMESA. Of that total, $92 million will go directly to counties and parishes, an increase of more than $20 million from FY 2025. Counties and parishes can use this revenue for coastal resilience and onshore infrastructure projects that strengthen coastal communities.
What’s next for counties
GOMESA revenue is distributed to Gulf-producing states and counties annually. Counties can learn more about GOMESA revenue sharing through DOI’s Office of Natural Resources Revenue (ONRR).
Related News
NACo sends letter to Congressional leadership asking them to reauthorize or extend key programs
NACo sends letter to Congressional leadership asking them to prioritize reauthorizing or extending key programs for counties ahead of September deadline
U.S. Senate Energy and Natural Resources Ranking Member introduces legislation to protect ratepayers from costs of data center expansion
On August 3, Senate Energy and Natural Resources Committee Ranking Member Sen. Martin Heinrich (D-N.M.) introduced the Guarding Ratepayers from Increased Demand-costs (GRID) Savings Act of 2026. The proposed legislation would create a process for large electricity users to pay for any infrastructure costs associated with increased demand for the electric grid.
Senate Agriculture Committee holds Farm Bill markup, remains in committee
On August 6, the U.S. Senate Agriculture Committee held a markup of the Agricultural Act of 2026, the Senate's version of the 2026 Farm Bill.
Advocacy
Congress increases oversight of Gulf Coast Restoration Trust Fund
On February 3, Congress passed new funding and authority for an audit and expanded oversight of the Gulf Coast Restoration Trust Fund, which houses federal funds for recovery from the Deepwater Horizon oil spill disaster. The provision was included in the Financial Services-General Government appropriations bill (FSGG), which was one of five included in a minibus package passed by Congress (P.L. 119-75).
