Trump budget plans to axe offshore royalties for four states with Gulf of Mexico shorelines

Trump budget plans to axe offshore royalties for four states with Gulf of Mexico shorelines

US President Donald Trump’s budget proposal for 2018 includes repeal of Gulf of Mexico oil activity royalty payments to four of the states with Gulf shorelines, according to the Houston Chronicle.

The budget plan proposes ending the program whereby Texas, Alabama, Mississippi and Louisiana are scheduled to share $275m next year.

These royalty payments come under the Department of the Interior’s (DOI) budget.

The White House’s financial reasoning is that the move would lower discretionary spending and federal taxes while at the same time, according to administration estimates, increasing federal revenues by $3.6bn over ten years.

When introduced in 2006, the royalty sharing was intended to boost oil and gas leasing in the Gulf.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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