Louisiana Cancels $3 Billion Coastal Restoration Project Funded by Oil Spill Settlement

Louisiana has officially canceled the $3 billion Mid-Barataria Sediment Diversion Project, the state's largest coastal restoration effort funded by the 2010 Deepwater Horizon oil spill settlement. The project aimed to restore over 20 square miles of wetlands in southeast Louisiana to combat coastal erosion and rising sea levels. Despite being backed by conservationists and some former officials as a vital, science-based solution, Governor Jeff Landry opposed the project due to concerns it would harm local fisheries and disrupt traditional livelihoods. The cancellation followed suspended federal permits, ongoing litigation, and escalating costs, with the state risking the loss of more than $1.5 billion in unspent funds and potentially having to repay $618 million already spent. Supporters have criticized the decision as a significant setback for coastal protection and urged for urgent action to address the state's disappearing coastline. The state plans to replace the project with a smaller-scale restoration effort and other measures, but the future of the funding and its allocation remains uncertain.