Gulf counties receive more than $92 million in revenue sharing from offshore energy projects

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.

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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). 

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