US Judge Allows SpaceX Land Swap to Proceed in Texas Wildlife Refuge

A federal judge on Monday declined to block a land exchange that would transfer more than 700 acres (280 hectares) of a Texas wildlife refuge to SpaceX, allowing the deal to move forward while a legal challenge continues.

U.S. District Judge Fernando Rodriguez Jr. denied a request for a preliminary injunction, ruling that the plaintiffs had not shown the parcel swap would intensify ecological risks in a Gulf Coast area already heavily altered by Elon Musk's rocket operations.

The exchange, approved by the U.S. Fish and Wildlife Service in June, would see SpaceX hand over 683 acres (276 hectares) it owns in return for federal land within the Lower Rio Grande Valley National Wildlife Refuge. The 103,000-acre (41,700-hectare) refuge stretches across four counties along the Texas border and contains animal habitats and historical sites.

Maps indicate the land SpaceX would receive lies closer to its launch site near the U.S.-Mexico border.

Laiken Jordahl, a spokesperson for the Center for Biological Diversity, which filed the lawsuit along with other opponents including tribal groups, described the swap as a gift of public lands to the company. He said the litigation would proceed even as the exchange goes ahead.

"This court order is not the final word," Jordahl said in a statement, adding that the lands hold spiritual, historical and conservation value for the people and wildlife of South Texas.

The lawsuit seeks to halt the exchange, which has drawn concern from local SpaceX critics who have long complained about lost beach access and exploding rockets as the company's footprint has grown.

The Fish and Wildlife Service did not respond to a request for comment on Monday's decision. The agency has previously said it does not comment on ongoing litigation. In June, it issued a final environmental assessment concluding the exchange would have no significant impact, stating that the acquisition would offer a "net conservation benefit" and "substantial long-term conservation value and improving landscape-scale habitat connectivity across refuges in South Texas."

In his ruling, Rodriguez said the plaintiffs presented "relatively weak" evidence of environmental harm. He acknowledged their argument that preserving wildlife and historical lands serves the public interest, but noted they offered no proof that the property would suffer degradation during the lawsuit. The judge also said an injunction would force changes to SpaceX's development plans, placing added hardship on the company's ability to meet milestones and contractual obligations.

SpaceX did not respond to an email seeking comment on the ruling. The company began operations in Texas more than a decade ago and has expanded rapidly, with employees last year voting to incorporate their own local government, called Starbase.