A federal judge on Monday declined to block a land transfer from the U.S. government to SpaceX, allowing the aerospace company to acquire more than 700 acres within the Lower Rio Grande Valley National Wildlife Refuge in Texas. The decision marks a setback for environmental and tribal groups who have challenged the exchange on ecological and cultural grounds.

U.S. District Judge Fernando Rodriguez Jr. denied a request for a preliminary injunction sought by plaintiffs opposing the land swap. The groups argued the transfer would increase environmental risks to a Gulf Coast region already affected by SpaceX’s rocket launch activities. However, the judge concluded that the plaintiffs did not provide sufficient evidence showing the transaction would cause immediate harm to wildlife habitats or cultural sites.

The land deal, approved by the U.S. Fish and Wildlife Service in June, involves SpaceX relinquishing 683 acres it currently owns in exchange for federal land within the 103,000-acre refuge, which spans four counties along the Texas-Mexico border. The area targeted for transfer lies closer to SpaceX’s launch site near the border.

Plaintiffs, including the Center for Biological Diversity and several tribal organizations, condemned the ruling and vowed to continue litigation. They criticized the swap as a gift of public lands that would facilitate the clearing of protected wildlife area for private development. "These lands hold incredible spiritual, historical and conservation value for the people and wildlife of South Texas," said Laiken Jordahl, a spokesperson for the Center for Biological Diversity. Jordahl emphasized that the legal challenge will persist despite Monday’s court ruling.

The Fish and Wildlife Service has maintained that the exchange would not cause significant environmental damage. Its final environmental assessment, released in June, described the transaction as providing a “net conservation benefit” by improving habitat connectivity across refuges in the region.

In his ruling, Judge Rodriguez noted the plaintiffs’ evidence of potential ecological harm was “relatively weak” and did not demonstrate that the land would suffer degradation while the lawsuit proceeds. He also pointed out that halting the transfer with an injunction could disrupt SpaceX’s project development timelines and contractual milestones.

SpaceX, which established its Texas launch facility over a decade ago, has grown substantially, leading employees to form a local governing body known as Starbase last year. The company did not provide comment on the ruling.

The legal controversy reflects ongoing tensions surrounding SpaceX’s expansion in the region, with critics concerned about restricted public access to beaches and the environmental impact of rocket launches in proximity to sensitive habitats. The court’s decision allows SpaceX to move forward with its plans, but the dispute remains unresolved.