Nebraska to assume federal environmental review authority for highway projects

State signs agreement to manage NEPA reviews for transportation improvements

February 24, 2026Updated: February 24, 2026
By Naydu Daza Maya

Press release

WASHINGTON — Nebraska has signed an agreement with the U.S. Department of Transportation allowing the state to assume greater responsibility for environmental reviews tied to highway and transportation projects.

U.S. Transportation Secretary Sean P. Duffy announced that Nebraska, following Texas and Maine, signed an agreement with the Federal Highway Administration granting the state full authority under the National Environmental Policy Act, or NEPA, for certain transportation projects.

Under the agreement, the Nebraska Department of Transportation will take over federal environmental review responsibilities that are typically handled by the federal government. State officials say the change is intended to streamline the review process and shorten project timelines.

“Today’s agreement removes unnecessary federal red tape,” Duffy said in a statement, adding that the move will help ensure projects are completed “on time and on budget.”

“Now NDOT, the agency that knows Nebraska’s transportation needs best, will be able to take on additional NEPA responsibilities and ensure projects like the Lincoln East Beltway are completed in less time and at less cost to taxpayers,” said FHWA Administrator Sean McMaster.

Federal law requires environmental reviews for major infrastructure projects receiving federal funding. Supporters of the program argue that allowing states to conduct their own reviews can accelerate construction and reduce administrative delays. Under the NEPA Assignment Program, states also assume legal responsibility for compliance decisions.

Nebraska previously held limited authority for certain environmental reviews. The new agreement grants the state full programmatic authority for environmental assessments and impact statements related to future transportation projects.

Gov. Jim Pillen said the agreement will allow Nebraska to “accelerate timelines and increase affordability” for infrastructure improvements across the state.

Nebraska projects that will benefit from this MOU include:

  • Lincoln East Beltway – this project includes the final segment of a beltway around the city of Lincoln planned since the 1970s. It will be a four-lane freeway from the eastern end of the South Bypass (NE-2) and connect to Interstate 80 near the city of Waverly.

  • US-75 Corridor Study, N-370 to Interstate 80 – this project would improve approximately six miles of US-75 from Interstate 80 in Omaha south to N-370 in Bellevue. Plans include reconstruction of mainline pavement and structures, enhanced traffic operations and safety, and improvements to seven interchanges serving the south Omaha metro area, including the communities of Bellevue, Capehart, and La Platte as well as Offut Air Force Base.

  • Interstate 480 Corridor Study, Interstate 80 to Harney Street – this project would improve mobility, safety and reduce delays on Interstate 480, where travelers in the central Omaha metro region experience high traffic volumes, collisions and recurring operational problems. Improvements will enhance traffic flow, reduce the frequency and severity of crashes and provide a more dependable corridor for the movement of people and goods.

  • The City of Beatrice’s Court Street Access and Safety Transformation Project – this project would reroute US-136 one block south to Market Street from its current location on Court Street. Moving through traffic and trucks south of Market will lead to increased safety in the downtown business area and allow Court Street to be redeveloped into a more pedestrian-focused corridor. The Department executed a $21 million grant agreement for the Beatrice project today as part of its efforts to move cut red tape and projects forward as quickly as possible. 

With the agreement, Nebraska becomes the ninth state to assume full NEPA responsibilities under the federal program.

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