Lawsuit Alleges 8 Violations Threaten Incentives for $100 Billion SpaceX Project

Key Facts

The tax incentive arrangements for SpaceX’s $100 billion project in Louisiana face a lawsuit alleging 8 violations of the open-meetings law during local meetings in July and August. The Associated Press said the alleged violations included five against the Vermilion Parish Police Jury and three against the parish’s Industrial Development Board. The plaintiffs are asking the court to void the board’s decision authorizing the incentive agreement, according to the report. A ruling in their favor could void the agreement linked to bringing the project to the state. The lawsuit concerns local approval procedures; the report does not describe it as a case against SpaceX itself.

The lawsuit was filed by three parish residents: Cheryl Choate of Pecan Island and Robert Young and Rebecca Young of Abbeville, along with the Vermilion Citizens Coalition. The Associated Press reported that Robert Young founded the nonprofit organization on October 21. The lawsuit says the 8 violations occurred across four meetings in July and August. The series of decisions challenged includes a settlement with Exxon Mobil, the reactivation of the Industrial Development Board, and then approval of the incentive agreement. The agreement could be voided if the court grants the plaintiffs’ request, the agency reported.

The plaintiffs say two Police Jury meetings were not livestreamed, even though Louisiana law requires governing bodies serving communities with populations of 25,000 or more to stream their sessions, according to the Associated Press. The allegation is tied to an amendment to the law in 2024, as reported by the agency. The lawsuit places transparency at the center of its objection to the process that led to approval of the incentives. The alleged violations also involve sessions of the Police Jury and the Industrial Development Board. The agency says the plaintiffs are seeking to void the board’s decision approving the agreement.

Before voting on the incentive agreement, the Police Jury unanimously approved a settlement with Exxon Mobil, then moved to appoint seven people to the Industrial Development Board, according to the Associated Press. The board had been inactive for about 30 years before it was reconstituted. The report says it was reactivated after the vote on the settlement. These steps show how the local decisions cited in the lawsuit were linked to the sequence of approvals for the project. The board’s reactivation and approval of the incentive agreement are among the actions the plaintiffs say were marred by violations.

The payment-in-lieu-of-taxes agreement exempts the Starbase Louisiana project from local property taxes in exchange for annual payments of $25 million to local taxing authorities, according to the Associated Press. That sets a specific annual payment against the exemption provided under the agreement. The report estimates that a successful challenge could void the agreement made to attract a project valued at $100 billion. The lawsuit’s potential impact is therefore focused on the incentive arrangement approved by local bodies. According to the agency, the claims remain tied to alleged violations of open-meetings procedures.

The Louisiana Economic Development agency says construction is expected in 2027, and the first launch could target a date beginning in 2029. The agency also expects the project to provide 3,000 direct jobs over 10 years, with an average annual salary of $92,600. Its announcement describes the site as SpaceX’s fourth and largest launch site. When complete, it is expected to include five launch complexes, each with two launch pads and a propellant farm. The agency also estimates that the project will generate more than 8,100 indirect jobs, bringing total new jobs in Acadiana to more than 11,100.

In trading on October 27, 2026, SPCX shares closed at $148.58, according to EL7 data. The close came as the Louisiana project faces a dispute over the approval process for the incentive agreement, not a reported challenge to the merits of the investment itself. EL7 data provided only the closing price for that day. Construction is scheduled to begin in 2027, according to projections from the Louisiana Economic Development agency. The first launch is targeting a date that could be in 2029.