The Coastal Texas Project is funded through a 65% federal and 35% non-Federal cost-share structure. Congress provides federal appropriations for U.S. Army Corps of Engineers (USACE) project work, while the State of Texas funds the Gulf Coast Protection District (GCPD) through the Texas General Land Office (GLO) to meet non-Federal obligations. Funding advances in stages as design and construction move forward.
It’s important to note that GCPD and GLO are both non-Federal sponsors for the Coastal Texas Project; each entity leading different elements of the broader project. GCPD is the lead non-Federal sponsor for the Galveston Bay Barrier System, also known locally as the “Ike Dike” and the Galveston Bay Shoreline and Island Protection.
How the Federal and Non-Federal Cost Share Works
For the Coastal Texas Project, the authorized funding structure divides eligible project costs between the federal government and non-Federal sponsors. USACE identifies the project’s overall cost share as 65% federal and 35% non-Federal.
USACE leads federal project delivery, including engineering, environmental review and construction planning. Congress appropriates the federal funding, and USACE administers those funds through the Civil Works program.
As a non-Federal sponsor, we help provide the resources and local commitments required to advance major portions of the project. Those responsibilities are numerous and may include:
- required local share of project costs
- easements and land acquisition
- stakeholder engagement
- rights-of-way and relocation
- design coordination
- regulatory compliance
- long-term operation and maintenance
These responsibilities are formalized through agreements with USACE as individual project elements advance. A Project Partnership Agreement is one type of project-specific agreement USACE uses to establish federal and non-Federal responsibilities for construction, cost sharing and execution of the work.
What WRDA 2022 Did for the Coastal Texas Project
The Water Resources Development Act is the primary legislation Congress uses to authorize U.S. Army Corps of Engineers water resources projects. The Water Resources Development Act of 2022 (WRDA 2022) authorized the Coastal Texas Project for design and construction. In practical terms, that authorization gave USACE the legal authority to advance the project. It did not provide the federal funding needed to carry out the work.
Funding comes through a separate step. Congress appropriates funds for USACE Civil Works activities, and USACE directs available funding to authorized projects through its annual funding decisions and work plans.
For the Coastal Texas Project, the first federal funding arrived in fiscal year 2024. USACE allocated $500,000 through the Army Civil Works Program Fiscal Year 2024 Work Plan to support preconstruction engineering and design to prepare the first portion of the Galveston Bay Shoreline and Island Protection for construction.
Why GCPD and the Texas General Land Office Are Part of the Funding Model
The Texas Legislature created GCPD in 2021 through Senate Bill 1160. The legislation established a regional entity capable of serving as a non-Federal cost-share partner for major projects along the upper Texas coast, including the Coastal Texas Project and the Sabine Pass to Galveston Bay Project.
The GLO explained at the time that the District could receive and issue funds and enter project partnership agreements for qualifying coastal projects. That statutory role remains central to who we are and the responsibilities we carry today.
The GLO remains a key state partner. State funds appropriated for GCPD are administered through the GLO under Local Cooperation Agreements, and the GLO serves as a non-Federal sponsor for major elements of the Coastal Texas Project. This structure is part of our partnership with USACE and the Texas General Land Office. As of 2026, the State of Texas has committed $950 million toward GCPD’s endeavors.
This state and regional participation helps provide the non-Federal share needed to leverage federal investment and keep individual project elements moving through design and construction.
How Funding Becomes Construction
Large USACE projects move through a sequence of authorization, funding, agreements, design and construction contracting. Each step establishes the authority, funding and responsibilities needed for the next phase.
For GCPD, that means coordinating our non-Federal share with federal funding as individual project features become ready to advance. In August 2024, for example, GCPD and USACE signed a Design Agreement covering design work for major Coastal Texas Project features, with GCPD responsible for 35% of the covered design costs.
Follow the Coastal Texas Project
Funding decisions shape when individual features can move from design toward construction. Readers can explore the Coastal Texas Project elements to see how the broader effort is organized and where our work fits within it. For questions about project funding, procurement or our responsibilities as a non-Federal sponsor, contact the District.
