What happened: The Federal Highway Administration (FHWA) finalized a renewed agreement with the Texas Department of Transportation (TxDOT), allowing the state to continue conducting its own environmental reviews under the National Environmental Policy Act (NEPA).

Through the NEPA assignment program, states assume FHWA’s environmental review responsibilities—helping reduce costs and shorten project timelines. The updated agreement signed July 17 at an event in Washington, D.C., streamlines the program by extending the renewal period from five to 10 years, eliminating monthly reporting and self-assessment requirements, and allowing TxDOT to use its internal documentation system for official notifications.

U.S. Transportation Secretary Sean Duffy also sent a letter to all governors encouraging broader adoption of NEPA assignment, citing its benefits to project delivery.

Why it matters: NEPA reviews are often lengthy and costly, delaying project approvals and increasing the risk of legal challenges that can halt construction. NEPA assignment reduces these delays by allowing states to align reviews with their own schedules, priorities, and resources.

What’s next: ARTBA has long supported the NEPA assignment program as a proven tool for streamlining project delivery while maintaining environmental safeguards. In the recently published reauthorization blueprint, the association recommended steps to make the program more accessible to states by simplifying the application process and expanding Surface Transportation Block Grant (STBG) eligibility to cover associated administrative costs.

ARTBA will continue working with lawmakers and the administration to advance NEPA reforms, including expanding and strengthening the assignment program.

For more information, contact ARTBA’s Prianka Sharma.

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