For years, Nebraska’s major infrastructure projects—such as the long-awaited Lincoln East Beltway—have been held back by a slow-moving hitch: Washington, D.C. Federal red tape and the bureaucratic maze of the National Environmental Policy Act (NEPA) have historically added years of delays and millions of dollars to local projects.
That changed this week. Governor Jim Pillen and U.S. Transportation Secretary Sean Duffy announced a landmark agreement that allows the Nebraska Department of Transportation (NDOT) to assume full responsibility and legal liability for federal environmental reviews. Nebraska is now one of only nine states to join this elite “NEPA Assignment” program.
A Case Study in Federalism
At its core, this move is a masterclass in federalism—the constitutional division of power between state and national governments. For decades, the “federal” side of that scale has been heavy, with D.C. bureaucrats imposing “one-size-fits-all” oversight on Nebraska soil.
By assuming this authority, Nebraska is reclaiming a measure of sovereignty. As Governor Pillen noted, the agreement “empowers states by allowing decisions to be made at the local level.” From a smaller government perspective, this shift is vital because it moves the “decision-center” closer to the people directly affected by the roads, bridges, and interchanges being built.
The Win: Efficiency and Local Knowledge
Proponents argue that the move will “streamline” government in three primary ways:
- Accelerated Timelines: By removing the “double-check” layer in which federal agencies re-review work already completed by state experts, projects move to construction significantly faster.
- Cost Savings: Reducing administrative delays prevents inflation from eroding construction budgets. Some states have reported tens of millions of dollars in savings through this program.
- Local Expertise: The engineers at NDOT understand the Platte River or the Sandhills far better than an auditor in D.C. ever could.
The Price of Sovereignty: Costs and Liability
However, “taking the wheel” comes with a price tag. Under 23 U.S.C. § 327, Nebraska not only gains authority but also assumes full legal liability. To participate, Nebraska had to waive its sovereign immunity in federal court. This means that if an advocacy group sues over a project’s environmental impact, Nebraska’s taxpayers—not the federal government—will now foot the bill for the legal defense.
What Opponents Are Saying: Critics and environmental advocates often worry that “speed” is a euphemism for “skimping.” Opponents may argue:
- Impartiality Risks: Can a state agency that is desperate to build a road truly be an impartial judge of that road’s environmental damage?
- Expertise Drain: To do this correctly, NDOT must maintain a “federal-grade” staff of specialists. If the state doesn’t invest enough in this expertise, they risk losing lawsuits that could stall projects longer than the federal red tape ever did.
What to Watch For
As Nebraska moves into this new era of infrastructure independence, watch for these key indicators:
- The Litigation Load: Will we see an uptick in lawsuits filed against NDOT now that the federal buffer is gone?
- Staffing Budgets: Keep an eye on the NDOT budget. Are the “efficiency” savings more than the assumed new overhead for specialized legal and technical staff?
Nebraska is betting that local common sense can outperform federal bureaucracy. It is a bold move toward self-governance, but one that requires the state to be more diligent than ever.
