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Louisiana Officially Cancels State's Largest Coastal Project

SOUTHEAST LOUISIANA, JUL 17 – Ongoing litigation and permit suspension led to cancellation of the $3 billion Mid-Barataria Sediment Diversion Project funded by Deepwater Horizon settlement funds.

  • Thursday, Louisiana canceled the $3 billion Mid-Barataria Sediment Diversion Project in southeast Louisiana, funded by 2010 Deepwater Horizon settlement money.
  • Facing ongoing litigation and a suspended federal permit, the Louisiana Trustee Implementation Group said the project is `no longer viable at this time`, noting costs have doubled since 2016.
  • To combat erosion, the plan targeted rebuilding 20 square miles of coastal land, but the $618 million already spent may need to be repaid, according to Federal trustees.
  • Amid environmental backlash, critics denounced the rollback as unscientific, with Garret Graves calling the decision `a boneheaded decision` and the coalition labeling it `a complete abandonment of science-driven decision-making`.
  • Facing potential losses of settlement money, state officials are exploring alternative plans, as Louisiana could lose over $1.5 billion in unspent funds, according to authorities.
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Fortune broke the news in New York, United States on Thursday, July 17, 2025.
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