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.

Brandon Elsner

Brandon Elsner is a government affairs professional with extensive experience shaping federal policy in oceans, science, environment, and infrastructure. He most recently directed federal strategic services at Waggoner Engineering, helping communities secure significant federal funding for water, transportation, and economic development projects. Brandon previously held senior advisory roles at NOAA and the White House Council on Environmental Quality and was a Legislative Assistant for Senator Roger Wicker (R-MS).

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Marianne Brisson

Marianne helps mission-driven organizations scale their impact through streamlined operations, project leadership, and strategic communications. She leads ESP’s day-to-day operations and ensures firm-wide success. Marianne previously served as Policy and Operations Advisor to the Minister of Fisheries, Oceans and the Canadian Coast Guard.

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Sarah Keartes

Sarah brings a decade of media relations and science communication expertise to her role at ESP Advisors. Before joining ESP, she reported on marine and coastal science for outlets including National Geographic News, PBS Digital Studios, and Hakai Magazine.

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Caroline Roche

Caroline brings sharp policy instincts and a passion for coastal resilience to ESP Advisors. At the White House Council on Environmental Quality, she supported both the freshwater and ocean policy teams. Most recently, she worked on communications and government affairs for Restore America’s Estuaries, deepening her expertise in habitat protection and federal engagement. Caroline holds a dual degree in Political Science and Fine Art from George Washington University.

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Austen Stovall

Austen Stovall’s background is in coral reef ecology, nature-based solutions, and coastal management. She most recently worked for Representative Jared Huffman (D-CA-02) on his oceans and fisheries portfolio. Austen holds a master’s degree in coastal science and policy from UC Santa Cruz.

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Kat draws upon her ocean policy expertise and years of experience managing projects, programs, and teams to catalyze success for ESP Advisors and our clients. Most recently, Kat served as staff for Senator Roger Wicker (R-MS), former Chair of the Senate Committee on Commerce, Science, and Transportation.

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Emily Patrolia

Emily Patrolia founded ESP Advisors to address the need for sophisticated government and public affairs services in the community she holds dear. Emily uses her advocacy and congressional experience and deep understanding of environmental science to lead the firm in all its endeavors.

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PAMELA DAY TAPSCOTT

Pamela Day has over 25 years of experience on Capitol Hill. As Chief of Staff for the late Congressman Don Young (R-AK), father of many initiatives and laws that govern ocean resources today, Pamela managed the annual appropriations process and oversaw 16 original bills that were signed into law.

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