Lawsuit Challenges $27 Billion SpaceX Tax Deal in Louisiana

The Vermilion Citizens Coalition and three residents filed a lawsuit in the 15th Judicial District Court on October 26, 2026, seeking to void a tax agreement between SpaceX and the Industrial Development Board of the Parish of Vermilion. The plaintiffs allege that the board and the Vermilion Parish Police Jury committed eight violations of Louisiana’s open meetings law to secretly approve a payment-in-lieu-of-taxes agreement on August 25.

The contested deal provides SpaceX with a property tax exemption and sales tax rebate estimated between $24 billion and $27.5 billion for a planned $100 billion spaceport near Pecan Island. The lawsuit claims officials used the code name "Project Osprey" to hide the deal's nature, utilized nondisclosure agreements, and failed to provide proper public notice or broadcast meetings as required by state law. Additionally, the suit alleges the governor's office removed settlement documents involving ExxonMobil Corp. to prevent public review.

Governor Jeff Landry defended the use of nondisclosure agreements, arguing they prevent other states from stealing his "thunder" during corporate negotiations. Louisiana Economic Development Secretary Susan Bourgeois supported the incentive package, citing the project's potential for job creation and investment. Attorney William Most, representing the plaintiffs, characterized the actions as a pattern of public malfeasance intended to keep decision-making secret from the people.