By WAA News Writer
WASHINGTON – As the Trump administration gears up for its first major offshore oil lease sale on December 10, covering 80 million acres in the Gulf of Mexico, a shadowy financial mechanism is fueling opposition from deep-pocketed environmental groups. Earthjustice and the Center for Biological Diversity (CBD) – key players in a November 18 lawsuit challenging the sale – are raking in millions from taxpayer-funded attorney fees, critics charge, turning public dollars into a war chest against President Trump’s “America First” energy push.
The lawsuit, filed in U.S. District Court for the District of Columbia, accuses the Bureau of Ocean Energy Management (BOEM) of violating the National Environmental Policy Act by skipping environmental reviews. Representing groups like Friends of the Earth, Healthy Gulf, and the Sierra Club, the suit seeks to halt the auction and block lease issuance, potentially derailing 30 sales through 2040 mandated by the 2025 Reconciliation Act. Proponents say this expansion could add 1-2 million barrels of daily U.S. oil production, bolstering energy independence and jobs.
But beneath the environmental rhetoric lies a lucrative “litigation machine.” Earthjustice reported $125.96 million in revenue for fiscal year 2024 (ending June 30, 2024), per IRS Form 990 filings, while CBD hauled in $34.48 million for calendar year 2023 – the latest full data available, with 2024 projections exceeding $35 million. Much of this stems from private foundations and donors, but a critical slice comes from federal reimbursements under the Equal Access to Justice Act (EAJA) and Endangered Species Act (ESA) provisions.
These laws award “prevailing” plaintiffs – often environmental litigants – attorney fees from the U.S. Treasury when they challenge federal actions. A 2012 GAO report tallied $21.2 million in such payouts for ESA cases alone from 2001-2010. Industry analysts, citing partial data from 2009-2013, estimate top groups like Earthjustice and CBD have pocketed over $50 million since 2010, with EAJA awards averaging $76,000 per forest-management case. In FY2019, 15 agencies disbursed $58 million across EAJA claims, much to eco-advocates.
“The public has no idea,” said one energy policy expert. “These aren’t grassroots efforts – they’re subsidized assaults on American prosperity, funded by the very taxpayers footing the bill for delayed drilling and higher energy costs.” Groups like CBD, which won 85% of Trump-era suits in his first term, recycle these windfalls into more litigation and fundraising, creating a self-perpetuating cycle. With Democrats out of power, this EAJA engine has become the left’s go-to tool to throttle Trump’s agenda, from offshore leases to infrastructure.
As the December sale looms, the suit could tie up billions in potential revenue. Trump officials decry it as “lawfare,” vowing swift defense. Yet without EAJA reform – long called for by conservatives – the cycle persists, pitting American wallets against coastal conservation.
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