A federal judge has ruled against efforts by conservation and tribal groups to block a land exchange that would allow SpaceX to expand its rocket testing and production facility into a protected wildlife refuge in Texas. The decision, issued Monday by Judge Fernando Rodriguez Jr. of the U.S. District Court for the Southern District of Texas, paves the way for the company to acquire about 715 acres currently part of the Lower Rio Grande Valley National Wildlife Refuge.
The plaintiffs, including the Center for Biological Diversity and the Carrizo/Comecrudo Nation of Texas, had sought a preliminary injunction to halt the land swap. They argued the transfer would cause irreparable harm to a region of significant environmental, historical, and cultural importance. The judge found that the groups had not sufficiently demonstrated they would suffer irreparable harm from the proposed exchange.
Under the agreement, the U.S. Fish and Wildlife Service would transfer the refuge land to SpaceX, which uses the area near Boca Chica in South Texas to test components of its Starship rocket. The disputed parcels include parts of Palmito Ranch Battlefield, recognized as the site of the last land battle of the U.S. Civil War. In return, SpaceX would provide approximately 683 acres elsewhere in Cameron County, Texas, some of which would be added to the Laguna Atascosa National Wildlife Refuge, located roughly 20 miles to the north along the Gulf Coast.
Laiken Jordahl, national public lands advocate for the Center for Biological Diversity, indicated the group may pursue an appeal. “This court order is not the final word,” Jordahl said. “These lands hold incredible spiritual, historical and conservation value for the people and wildlife of South Texas. We won’t stop fighting to keep this irreplaceable public wildlife refuge safe from SpaceX bulldozers.”
The Lower Rio Grande Valley National Wildlife Refuge provides critical habitat for endangered species such as the ocelot and serves as a vital stopover for migratory shorebirds including piping plovers and red knots. Previous investigations have documented environmental damage linked to SpaceX operations, including a 2021 rocket launch that scattered debris across the refuge, destroyed bird nests, and started a small fire.
The land swap has become a priority under the Biden administration’s Department of the Interior, with Fish and Wildlife Service officials reportedly working to expedite the deal following the inauguration of President Trump in January 2025. According to internal government communications, Fish and Wildlife Service officials sought to complete the transaction on an accelerated timeline shortly after Elon Musk assumed a federal leadership role heading the Department of Government Efficiency, an initiative aimed at reducing federal spending and staffing.
Representatives for the Interior Department and SpaceX did not immediately respond to requests for comment on the ongoing dispute. The case highlights the tensions between federal conservation mandates and private industry expansion, raising complex questions about environmental protection and economic development in sensitive natural areas.