Coastal Trust Fund Act

The Coastal Trust Fund Act proposes the establishment of a dedicated "Coastal Storm Risk Management Trust Fund" within the U.S. Treasury. This fund would be used to provide a reliable, long-term source of money for projects designed to protect shorelines and coastal communities from storm damage. The bill aims to shift the federal approach from reactive disaster relief to proactive risk management, specifically targeting activities such as beach nourishment, dune restoration, and the construction of seawalls or jetties.

Under the proposal, the fund would receive an annual deposit of $1 billion sourced from existing federal revenues generated by offshore energy leases, such as royalties and fees from oil and gas activities on the Outer Continental Shelf. Because it utilizes existing revenue streams, the bill's sponsors intend for the program to be budget-neutral, meaning it would not require new taxes or fees from citizens. The funds would be managed by the Secretary of the Army and allocated to the U.S. Army Corps of Engineers for federally authorized coastal projects.

If enacted, the bill would require the Secretary to submit annual reports to Congress detailing how the money was spent and which specific coastal projects were funded. By securing a permanent funding stream, the legislation seeks to ensure that coastal infrastructure projects—which protect areas contributing significantly to the national economy—can proceed without the delays often caused by the annual federal appropriations process.