Republicans' Budget Reconciliation Bill: Ocean Funding Impacts & Key Changes

On July 4, President Trump signed a sweeping $3.3 trillion budget reconciliation bill into law—capping off a marathon of overnight votes in Congress just ahead of Independence Day. Passed along party lines with Vice President JD Vance casting the tie-breaking vote in the Senate, the bill pairs $4.5 trillion in tax cuts with $1.2 trillion in spending reductions.

Headlines focused on the political firestorm—deep cuts to Medicaid and food assistance, rising deficits, and ramped-up spending on border security and defense. But buried in the 1,000+ page legislation are provisions with impacts for ocean and coastal stakeholders. Here’s what you might’ve missed—and why it matters.

Ocean and Coastal Funding Impacts at NOAA

The bill rescinds an estimated $193 million in unobligated funds out of $2.8 billion that were previously appropriated to the National Oceanic and Atmospheric Administration (NOAA) through the Inflation Reduction Act (IRA). These funds supported efforts such as:

• Coastal zone management and adaptation grants

• Habitat restoration and climate resilience projects

• Ocean data and observing systems

  
  

These reductions will affect communities that were expecting these resources for planning, emergency preparedness, and conservation.

Increased Investment in Maritime and Polar Infrastructure

The bill allocates $24.6 billion in funding to the U.S. Coast Guard. This includes funding for:

• New aircraft and helicopters

• Construction of polar and Arctic icebreaker ships

• Expansion of maritime monitoring and unmanned systems

• Improvements to shore infrastructure and homeport facilities

  
  

This represents a significant investment in maritime readiness and Arctic operations, with implications for national security, emergency response capabilities, U.S. shipbuilding industries, and increased maritime technology procurement.

Additional Funding for Coastal Protection in the Gulf

The bill includes a key update to the Gulf of Mexico Energy Security Act (GOMESA), a program that provides a portion of offshore oil and gas lease sales to Gulf states to use for coastal protection and resilience. The bill raises the revenue-sharing cap from $500 million to $650 million annually for the next decade, providing additional resources for Texas, Louisiana, Mississippi, and Alabama coastal preparedness and conservation.

Eliminations and Reductions for Climate Programs

Several climate and environmental programs funded by the IRA are significantly reduced or eliminated in this bill. Notable provisions include:

• Repeal of the Greenhouse Gas Reduction Fund

• Ending key tax credits for renewable energy industries

• Elimination of electrification grants for heavy-duty vehicles

• Rescission of air monitoring and environmental justice grants

• Delay of the methane emissions reduction program

These changes will impact local and regional environmental initiatives and data collection efforts and heavily impact the industries related to renewable energy and associated infrastructure.

Next Steps

With the ink barely dry, Democrats are already using this bill to mobilize donors and voters, aiming to flip control of Congress in the 2026 midterm election. Behind the scenes, senior Republican staff are sounding the alarm over how the legislation may reshape the political landscape. House Speaker Mike Johnson (R-LA-04) has announced plans to pursue two more reconciliation bills in the next year—the fast-track process that bypasses the Senate filibuster and excludes the minority party from shaping the outcome.

That means the window for shaping future policy is narrow—but not closed. Now is the time for coastal and ocean stakeholders to act. Whether you’re eyeing new funding opportunities or bracing for provisions that could set your work back, implementation of these provisions, and helping to shape these next bills will matter. A lot.

ESP Advisors is already tracking what's coming and positioning our clients to influence, defend, and seize what's possible in the next round. If you're not at the table, you’re likely on the menu. Work with us to make sure your priorities are protected—and advanced—in the next reconciliation fights.