Nebraska Becomes Third State to Cut Federal Red Tape and Fast-Track Major Highway Projects
Key Takeaways
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Nebraska is the third state to join this partnership under the Trump administration, following similar agreements with Texas and Maine.
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The agreement gives the Nebraska Department of Transportation full responsibility and legal accountability for environmental reviews on major highway projects.
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Projects that could move ahead more quickly include the Lincoln East Beltway, improvements along the US-75 corridor in the Omaha area, upgrades to Interstate 480, and Beatrice’s $21 million Court Street safety and access project.
The Trump administration says Nebraska is ready to take the wheel on speeding up transportation projects — and cut through what officials describe as years of federal red tape in the process.
On Feb. 23, U.S. Transportation Secretary Sean P. Duffy announced a new agreement between Nebraska and the Federal Highway Administration (FHWA) that shifts more environmental review authority from Washington to the state.
Under the agreement, Nebraska will take over federal environmental review duties required under the National Environmental Policy Act, meaning the Nebraska Department of Transportation can handle those reviews for major highway projects. Supporters say putting the process in the state’s hands should help move projects from the drawing board to construction faster.
“Nebraska is building again thanks to President Trump,” Duffy said in the news release. “Today’s agreement removes unnecessary federal red tape, ensuring more major infrastructure projects are built on time and on budget. I hope to see other states follow Nebraska’s lead so we can get shovels in the ground sooner and continue delivering results for the American people.”
FHWA Administrator Sean McMaster said federal oversight has slowed progress in the past.
“Burdensome reviews and approvals by Washington have slowed progress on road and highway improvements in Nebraska and across the country,” McMaster said. “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.”
What This Means for Nebraska
The agreement is part of the federal NEPA Assignment Program, which allows states to take full responsibility — and legal liability — for environmental reviews on certain transportation projects.
Nebraska first gained limited NEPA authority for smaller, categorical exclusions in 2018. With this new memorandum of understanding, the state now has full authority to conduct environmental assessments and environmental impact statements for future transportation projects.
Gov. Jim Pillen praised the move as a shift toward local control.
“President Trump and Secretary Duffy are making great efforts to empower states by allowing decisions to be made at the local level, cutting through layers of over-the-top environmental regulation,” Pillen said. “For decades, bureaucrats have delayed or blocked critical infrastructure projects. But today, the Nebraska Department of Transportation can streamline government, accelerate timelines, and increase affordability as we continue to build our state’s future.”
NDOT Director Vicki Kramer said the department was prepared for the added responsibility.
“Our experience delivering categorical exclusions coupled with a strong partnership with the Federal Highway Administration allowed Nebraska to achieve full Section 327 NEPA Assignment in less than a year,” Kramer said. “This milestone is a direct reflection of the Trump Administration’s intense focus on streamlining project delivery. I am incredibly proud of the NDOT team and grateful for the support of Governor Pillen and our federal partners as we work to deliver critical infrastructure improvements more effectively for Nebraskans.”
Projects That Could Move Faster
Several high-profile projects are expected to benefit from the streamlined review process:
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Lincoln East Beltway: The long-planned final segment of a beltway around Lincoln, first envisioned in the 1970s. The four-lane freeway would extend from the eastern end of the South Bypass (NE-2) and connect to Interstate 80 near Waverly.
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US-75 Corridor Study (N-370 to Interstate 80): A roughly six-mile stretch from Interstate 80 in Omaha south to N-370 in Bellevue would see pavement reconstruction, structure upgrades, safety improvements and work on seven interchanges serving Bellevue, Capehart, La Platte and Offutt Air Force Base.
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Interstate 480 Corridor Study (Interstate 80 to Harney Street): Plans call for improving traffic flow and safety in central Omaha, where congestion and crashes are common. The goal is to reduce delays and make the corridor more reliable for commuters and freight traffic.
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Beatrice’s Court Street Access and Safety Transformation Project: The city plans to reroute US-136 one block south to Market Street, moving truck traffic away from downtown Court Street. The shift is designed to improve safety and allowredevelopment of Court Street into a more pedestrian-friendly corridor. The U.S. Department of Transportation executed a $21 million grant agreement for the Beatrice project as part of the broader effort to move projects forward more quickly.
Part of a Broader Push
Nebraska is the third state to sign on to this renewed partnership model under the Trump administration. Last summer, Duffy signed a renewed NEPA memorandum of understanding with the Texas Department of Transportation. Just last month, FHWA finalized a similar NEPA Assignment agreement with the Maine Department of Transportation.
The push follows a July 17, 2025 letter from Duffy to governors encouraging states to “take advantage of unique statutory authority and assume the federal environmental review process” in compliance with NEPA.
With Nebraska’s addition, nine states now have full NEPA assignment authority, and more have expressed interest. FHWA has also provided technical assistance and recently co-hosted a NEPA Assignment Peer Exchange to help states understand the process.
The Federal Role
The FHWA, part of the U.S. Department of Transportation, oversees more than 4.2 million miles of public roadway nationwide, including over 49,000 miles of Interstate highways, more than 624,000 bridges and 580 tunnels. Americans traveled 3.3 trillion vehicle miles in 2024 alone.
Under Duffy’s leadership, the agency says it is focused on “getting back to basics,” improving safety and mobility while streamlining how highways are designed, built and maintained.
For Nebraska, the message from state and federal leaders is clear: fewer layers of review, more local control and, they argue, faster progress on projects that have been years in the making.
About the Author
Karina Mazhukhina, Digital Content Specialist
Digital Content Specialist
Karina Mazhukhina has extensive experience in journalism, content marketing, SEO, editorial strategy, and multimedia production. She was previously a real-time national reporter for McClatchy News and a digital journalist for KOMO News, and ABC-TV affiliate in Seattle.