Trump administration threatens California coastal funding over drilling and SpaceX opposition

The Trump administration has issued a draft federal review threatening to suspend federal funding for California’s coastal management program and potentially strip the state of its authority over its coastline. The 92-page review, conducted by NOAA’s Office for Coastal Management, alleges a pattern of “jurisdictional and regulatory overreach” and “unjustified hostility and political bias” by state regulators against offshore drilling and SpaceX launch activities.

As part of more than a dozen proposed corrective actions, the review directs the California Coastal Commission to meet with SpaceX to address concerns regarding political bias. It also instructs regulators to meet with Sable Offshore Corp., a Texas-based company seeking to restart offshore operations near Santa Barbara. Additionally, the state’s lead coastal agency must pledge by January that it will not “categorically oppose” initiatives related to industries such as oil and gas.

The dispute involves the Coastal Zone Management Act of 1972, which allows states to review and object to federal projects affecting their shorelines. Commerce Secretary Howard Lutnick ordered the review as part of a broader administration effort to promote domestic fossil fuel production and spaceport infrastructure.