The bill speeds delivery of transportation projects by letting States take over federal permitting (with some funding flexibility and added reporting) at the cost of higher risks of weaker environmental protection, inconsistent standards, diverted construction funds, and more litigation.
State and local governments and nearby residents — States can assume federal permitting for highway, railroad, and transit projects so environmental review and construction can start and finish faster, reducing federal permitting delays.
State governments — may use Federal-aid highway funds to pay attorneys' fees for covered projects, lowering immediate state budget pressure for legal costs tied to permitting and project defense.
State and local governments and the public — the delegated-permitting program requires audits, public comment, and annual reporting to Congress, increasing transparency and accountability for how States handle federal permitting responsibilities.
Homeowners, local communities, and the environment — transferring federal permitting to States could weaken federal oversight and lead to lower environmental protections in some States, increasing risks to air, water, and habitats near projects.
Taxpayers and transportation projects — allowing use of Federal-aid highway funds for legal fees could divert money away from construction, maintenance, and direct transportation improvements.
Project sponsors, opponents, and government agencies — variation in State capacity and standards can create inconsistent permitting regimes and legal uncertainty across States, complicating planning and compliance for multi-state projects.
Based on analysis of 2 sections of legislative text.
Creates a joint Army Corps–EPA program allowing states to assume federal section 404 (and limited section 10) permitting and related environmental reviews for highway, railroad, and public transportation projects.
Official title: Establish the Waterway Permit Section 404 Assignment program, and for other purposes.
Introduced December 3, 2025 by Jon Husted · Last progress December 3, 2025
Allows states to take over certain federal permits for highway, railroad, and public transportation projects by creating a joint Army Corps–EPA program that lets the Army assign its Clean Water Act section 404 (dredge/fill) and limited Rivers and Harbors Act section 10 permitting responsibilities to participating states. States that assume responsibility must follow the same procedural and substantive federal requirements (including NEPA, ESA consultation, and historic-preservation obligations) and may carry out associated federal environmental reviews tied to those permits. The Administration must establish the program within 60 days of enactment and may use written agreements or MOUs with states to transfer responsibilities for covered projects.