Coastal Trust Fund Act

Bill Number

H.R. 7459

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Water Resources Development

Status

Introduced

Latest Action

2026-02-11: Referred to the Subcommittee on Water Resources and Environment.

Last Updated

2026-06-03T08:09:02Z

AI-Generated Summary

Purpose

The Coastal Trust Fund Act (H.R. 7459) aims to create a dedicated funding source for coastal storm protection projects managed by the U.S. Army Corps of Engineers. It establishes a trust fund financed by revenues from offshore oil and gas activities to support construction, maintenance, and related efforts to reduce risks from hurricanes, storms, and erosion along U.S. coastlines.

Key Provisions

• Establishment of the Fund: Creates the "Coastal Storm Risk Management Trust Fund" in the U.S. Treasury, separate from general funds.
• Funding Sources:
• Annual deposit of $1 billion per fiscal year from revenues generated under the Outer Continental Shelf Lands Act (revenues from oil and gas leasing bonuses, rentals, royalties, fees, and similar payments).
• Earnings from investing unused portions of the fund in U.S. government securities.
• Administration and Use:
• Managed by the Secretary of the Treasury, who certifies deposits quarterly.
• Funds are available indefinitely until spent, but only for the federal share of costs for authorized coastal projects, including:
• Construction, operation, maintenance, repair, rehabilitation, and periodic nourishment (adding sand to beaches to combat erosion).
• Feasibility studies, engineering, design, and emergency repairs.
• Projects must be specifically authorized by Congress and carried out by the Secretary of the Army (through the Corps of Engineers).
• Budget and Reporting Requirements:
• The Corps must request in its annual budget the full projected balance of the fund at the start of the fiscal year.
• An annual report to Congress detailing fund usage, obligated projects, and remaining balances.
• Protections and Termination:
• Does not reduce funding for other programs like the Land and Water Conservation Fund or Gulf of Mexico energy security allocations.
• Upon fund termination, any leftover money transfers to the general Treasury.

Significant Changes to Existing Law

• Introduces a new, dedicated trust fund mechanism, diverting a portion of Outer Continental Shelf revenues specifically for coastal protection, which previously went to general miscellaneous receipts in the Treasury.
• Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (often called the Budget Control Act) to allow budgetary adjustments. This means appropriations from the fund for Corps of Engineers projects (in construction, Mississippi River, and operation/maintenance accounts) can exceed spending caps if Congress designates them for coastal storm risk management, providing flexibility outside normal budget limits.

Potential Impacts

• Government Agencies: The Corps of Engineers gains a stable, predictable funding stream ($1 billion annually, plus interest) for coastal projects, potentially speeding up implementation without relying solely on annual appropriations. The Treasury Department takes on administrative duties, and Congress receives enhanced oversight through reports.
• Citizens: Coastal residents and communities in storm-prone areas (e.g., along the Atlantic, Gulf, and Pacific coasts) benefit from improved flood and erosion defenses, reducing property damage, displacement, and insurance costs from events like hurricanes. This could enhance resilience to climate change effects without increasing general taxes.
• International Relations: No direct impacts mentioned; the bill focuses on domestic U.S. coastal management and uses revenues from U.S. territorial waters.

Main Stakeholders Affected

• Coastal Communities and Property Owners: Primary beneficiaries through enhanced storm protection.
• U.S. Army Corps of Engineers: Directly empowered to execute projects with dedicated funds.
• Oil and Gas Industry: Indirectly affected, as a portion of their Outer Continental Shelf payments is redirected to this fund.
• Taxpayers and Federal Budget: Benefits from targeted use of existing revenues; protects other conservation funds.
• Congressional Committees: Transportation and Infrastructure, Environment and Public Works, Natural Resources, and Budget committees oversee referral and reporting.

Notable Legal, Constitutional, or Political Implications

• Legal: Reinforces congressional authority over federal spending by tying funds to specific, authorized projects, ensuring accountability. The trust fund structure (similar to other dedicated funds like the Highway Trust Fund) provides legal separation from general revenues, but requires appropriations acts for actual spending.
• Constitutional: Aligns with Congress's power to tax, spend, and regulate commerce (including interstate and foreign commerce via coastal protection). No apparent conflicts with property rights or environmental laws, as projects must follow existing authorizations.
• Political: Could reduce partisan debates over disaster funding by creating a "lockbox" for coastal resilience, especially amid rising sea levels and storm intensity. The budgetary adjustment provision might spark discussions on fiscal discipline, as it carves out exceptions to spending caps established to control deficits.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Van Drew, Jefferson [R-NJ-2]

Cosponsors (3)

Rep. Gillen, Laura [D-NY-4], Rep. Smith, Christopher H. [R-NJ-4], Rep. Kelly, Mike [R-PA-16]

Recent Actions

• 2026-02-11: Referred to the Subcommittee on Water Resources and Environment.
• 2026-02-10: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Natural Resources, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-02-10: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Natural Resources, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-02-10: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Natural Resources, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-02-10: Introduced in House
• 2026-02-10: Introduced in House

Bill Versions

• Coastal Trust Fund Act — issued 2026-02-10 — PDF (6 pages)