State and federal leaders announce agreement to accelerate Nebraska infrastructure projects
Lincoln, Nebraska – In a move state and federal leaders say will speed up road construction and cut delays, Governor Jim Pillen and U.S. Transportation Secretary Sean P. Duffy announced a new agreement that gives Nebraska greater control over environmental reviews for major transportation projects. The agreement, reached through the Federal Highway Administration, allows the Nebraska Department of Transportation to assume responsibilities under the National Environmental Policy Act, commonly known as NEPA.
State officials say the change will streamline reviews, reduce bureaucratic hurdles, and allow projects to move forward faster and more efficiently. By shifting certain federal responsibilities to the state level, Nebraska can complete reviews locally while maintaining federal environmental standards.
Governor Pillen emphasized that the agreement reflects a broader push to empower states and remove barriers that slow infrastructure development.
“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,” said Gov. Pillen. “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. This agreement reflects our partnership up and down the Trump Administration as we continue to deliver results for Nebraskans.”
Secretary Duffy said the agreement will help ensure projects are delivered on schedule and within budget.
“Nebraska is building again thanks to President Trump,” said U.S. Transportation Secretary Sean P. Duffy. “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.”
Faster Reviews, Local Control
The National Environmental Policy Act requires environmental review before major transportation projects can move forward. Under the new arrangement, NDOT will handle additional NEPA responsibilities, which officials say will shorten timelines while preserving environmental protections.
FHWA Administrator Sean McMaster noted that federal reviews have historically slowed transportation improvements.
“Burdensome reviews and approvals by Washington have slowed progress on road and highway improvements in Nebraska and across the country,” said FHWA Administrator Sean McMaster. “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.”
NDOT Director Vicki Kramer said the milestone reflects close cooperation between state and federal partners.
“I want to thank Secretary Duffy and Administrator McMaster for their leadership and commitment to empowering states to deliver transportation projects more efficiently,” said NDOT Director Kramer. “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. 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.”
Nebraska becomes the third state to join the U.S. Department of Transportation in this partnership model. Texas renewed its NEPA memorandum of understanding last summer, and Maine entered a similar agreement earlier this year.
Major Projects Expected to Benefit
Several significant infrastructure projects are expected to move forward more efficiently under the new agreement.
One of the most anticipated is the Lincoln East Beltway, the final segment of a beltway planned since the 1970s. The project will create a four-lane freeway connecting the eastern end of the South Bypass (NE-2) to Interstate 80 near Waverly.
In the Omaha metro area, the US-75 Corridor Study aims to improve about six miles of roadway from Interstate 80 south to N-370 in Bellevue. Plans include rebuilding pavement and structures, improving safety, enhancing traffic operations, and upgrading seven interchanges serving south Omaha, Bellevue, and Offutt Air Force Base.
The Interstate 480 Corridor Study will address heavy congestion and safety concerns between Interstate 80 and Harney Street. Improvements are designed to enhance mobility, reduce crashes, and create a more reliable route for commuters and freight movement.
The City of Beatrice will also see improvements through the Court Street Access and Safety Transformation Project. The plan reroutes US-136 one block south to Market Street, moving truck traffic away from downtown. This change is expected to improve safety and allow Court Street to be redeveloped into a more pedestrian-friendly corridor. Officials also executed a $21 million grant agreement for the Beatrice project as part of efforts to accelerate progress.
State and federal leaders say the agreement marks a turning point for infrastructure delivery in Nebraska. By reducing delays and empowering local decision-making, officials believe the partnership will help deliver safer roads, stronger connections, and long-awaited improvements for communities across the state.
