Louisiana last week canceled a $3 billion repair of disappearing Gulf coastline, funded by the 2010 Deepwater Horizon oil spill settlement, scrapping what conservationists called an urgent response to climate change but Gov. Jeff Landry viewed as a threat to the state’s way of life.

Despite years of studies and reviews, the project at the center of Louisiana’s coastal protection plans grew increasingly imperiled after Landry, a Republican, took office last year. Its collapse means that the state could lose out on more than $1.5 billion in unspent funds and may even have to repay the $618 million it already used to begin building.

The Louisiana Trustee Implementation Group, a mix of federal agencies overseeing the settlement funds, said that “un…

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