Coastal Trust Fund Act
- Sponsor
- Rep. Van Drew, Jefferson [R-NJ-2]
- Committees
- Transportation and Infrastructure Committee (primary)
- Last action
- Feb 11, 2026
Bottom line
This bill creates a dedicated, annually funded mechanism to support critical coastal infrastructure projects, leveraging offshore energy revenues to enhance resilience against storms while exempting these funds from federal spending limits.
What it actually does
This bill establishes the Coastal Storm Risk Management Trust Fund in the U.S. Treasury, dedicating $1 billion annually from Outer Continental Shelf (OCS) revenues to fund U.S. Army Corps of Engineers projects for coastal storm risk management. It also amends existing budget law to ensure that appropriations from this fund do not count against federal spending caps, thereby facilitating the full utilization of these dedicated resources for coastal protection.
Proponents argue
Proponents argue this bill provides a stable, predictable funding source for vital coastal protection projects, reducing reliance on emergency appropriations and ensuring long-term resilience for coastal communities and ecosystems. They highlight the use of OCS revenues as an appropriate source, linking offshore resource extraction to coastal protection and providing a proactive approach to disaster preparedness.
Opponents contend
Opponents might argue that dedicating $1 billion annually from OCS revenues could divert funds from other critical federal priorities or that the budgetary adjustment could weaken fiscal discipline by allowing additional spending outside of established caps. Concerns might also be raised about the specific allocation process or whether the funding mechanism is truly sustainable or sufficient.
The bill is concise and can be read and understood quickly, allowing ample time for informed evaluation of its provisions and implications.
Section 2(a)
Establishment of Coastal Storm Risk Management Trust Fund
This provision formally creates the "Coastal Storm Risk Management Trust Fund" within the U.S. Treasury. This fund will serve as the dedicated account for revenues and expenditures specifically related to coastal storm risk management activities, ensuring that funds are segregated for their intended purpose.
Supporters argue
Supporters argue that establishing a dedicated trust fund ensures that revenues intended for coastal protection are segregated and used solely for that purpose, providing transparency and accountability for these critical investments.
Critics contend
No specific opposition is typically raised against the administrative establishment of a fund itself, though the funding source or the specific uses of the funds might be debated.
Tradeoffs
The primary tension is ensuring that the fund's establishment does not merely shift existing resources but genuinely adds to coastal resilience efforts through new, dedicated funding.
Section 2(b)
Annual Funding from Outer Continental Shelf Revenues
This section mandates that $1 billion be credited to the Coastal Storm Risk Management Trust Fund each fiscal year. These funds are to be derived from revenues collected by the U.S. from bonuses, rentals, royalties, and fees associated with activities on the Outer Continental Shelf (OCS). It also includes any amounts earned on investments of the Fund.
Section 3(a)
Authorization for Use of Funds for Coastal Projects
This provision specifies that funds from the Trust Fund will be available to the Secretary of the Army (acting through the Chief of Engineers) for the federal share of costs related to construction, operation, maintenance, repair, rehabilitation, and periodic nourishment of coastal storm risk management projects. These funds are contingent on being made available in advance through annual appropriations acts.
Section 3(d)(1)
Scope of Eligible Coastal Storm Risk Management Projects
This section broadly defines "coastal storm risk management project" to include projects for hurricane and storm damage reduction, coastal storm risk management, shoreline protection, or periodic nourishment. It explicitly covers associated feasibility studies, engineering and design activities, operation and maintenance, and repair or restoration, provided they are specifically authorized by Congress.
Section 4
Budgetary Treatment Expansion and Adjustment for the Trust Fund
This section amends the Balanced Budget and Emergency Deficit Control Act of 1985 to create a special budgetary adjustment. This means that appropriations for Corps of Engineers accounts (Construction, Mississippi River and Tributaries, and Operation and Maintenance) that are derived from the Coastal Storm Risk Management Trust Fund and designated for coastal storm risk management projects will not count against statutory spending caps for that fiscal year.
Creates a special budgetary adjustment for appropriations from the Coastal Storm Risk Management Trust Fund, allowing them to be enacted without counting against statutory spending caps.
Section 4, amending 2 U.S.C. 901(b)(2)
Why it matters:This is standard legislative practice for amending existing statutes. However, its effect is highly consequential for federal spending and budget policy, as it creates an exception to established fiscal rules.
Case for: Proponents argue that this adjustment ensures the $1 billion annual appropriation for coastal projects does not force cuts to other critical federal programs, allowing the dedicated fund to be fully utilized for its intended purpose without internal budgetary competition.
Case against: Critics contend that such adjustments undermine fiscal discipline and can lead to increased federal spending without requiring corresponding offsets, potentially exacerbating budget deficits and setting a precedent for future carve-outs.
Estimated impact: Allows for an additional $1 billion in annual spending for coastal projects beyond existing spending caps, potentially totaling tens of billions over a decade, without requiring offsets from other federal programs.