Louisiana scraps $2.2B Mid-Barataria Sediment Diversion project

(The Center Square) − Louisiana officials have formally canceled the massive Mid-Barataria Sediment Diversion project, citing rising costs, permit challenges, and fierce opposition from coastal communities.

Once envisioned as a centerpiece of the state’s coastal defense strategy, the multibillion-dollar effort to reconnect the Mississippi River to its eroding wetlands will now be replaced by a scaled-down approach.

“The Mid-Barataria Sediment Diversion project, in its current form, is no longer financially or practically viable,” Gov. Jeff Landry said in a statement. “Since 2016, the cost of this project has doubled and is now expected to exceed the over $2 billion budget. This level of spending is unsustainable.”

The state’s Coastal Protection and Restoration Authority has reached an agreement with federal trustees to formally end the project.

As part of the termination process, the project’s authorized budget has been slashed from $2.26 billion to $618.5 million, representing funds already distributed. Those dollars can now only be used to close out the project, according to a resolution signed by the Louisiana Trustee Implementation Group.

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CPRA had been leading construction of the diversion and served as the lead implementing trustee for the project under the Natural Resource Damage Assessment program tied to the 2010 Deepwater Horizon oil spill. Federal officials said CPRA’s decision was driven by a mix of legal hurdles, including the suspension of a key permit by the U.S. Army Corps of Engineers and ongoing litigation.

Originally approved for funding in 2023, the diversion was meant to rebuild marsh in Plaquemines Parish by diverting sediment-rich water from the Mississippi River into the Barataria Basin.

However, critics argued it would devastate the region’s fisheries by flooding estuaries with fresh water and altering salinity levels vital to shrimp, oysters, and other marine life.

“Beyond the financial concerns, the MBSD threatens Louisiana’s seafood industry, our coastal culture, and the livelihoods of our fishermen — people who have sustained our state for generations,” Landry said. “We cannot continue down this broken path.”

Instead, state officials are eyeing a return to a smaller, earlier version of the project known as Myrtle Grove. That plan envisions a diversion about a quarter the size of the Mid-Barataria proposal, and CPRA has budgeted $1.6 million for its development in the agency’s 2026 annual plan.

The state also plans to construct a large land bridge in the Barataria Basin using dredged sediment, a technique seen as more compatible with existing fisheries and less dependent on uncertain long-term modeling.

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“CPRA is now moving forward with another coastal restoration plan — one that balances our environmental goals with the needs of all citizens, businesses, and industries,” Landry said.

A final budget reconciliation will be prepared by CPRA and NOAA, and any remaining funds from the Mid-Barataria project will be made available for future restoration work in Louisiana.

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