Texas assumes environmental permitting under new USDOT agreement

Two construction vehicles on a white-sand beach.

July 25, 2025

The Texas Department of Transportation (TxDOT) has committed to taking greater ownership over the environmental permitting requirements process after signing a Memorandum of Understanding (MOU) with the U.S. Department of Transportation (USDOT).

By removing common barriers and red tape that slow down essential highway and bridge projects, TxDOT anticipates accelerating the construction process for critical infrastructure.

The agreement is the latest step in the federal government’s agenda to prioritize critical infrastructure and usher in the “golden age of transportation.” The “America is Building Again” initiative places the nation’s transportation infrastructure at the front of the pack, focusing on improving transportation safety, accelerating project delivery, increasing opportunities and strengthening state partnerships.

Texas will now assume complete control of environmental reviews under the National Environmental Policy Act (NEPA), taking greater responsibility over project delivery. The agreement will serve as a model for future Federal-State partnerships, spurring other governors nationwide to proactively work toward deregulating the construction process to build faster and reduce costs.

The MOU between TxDOT and USDOT will last a decade, extending those responsibilities by an additional five years. The state submitted its second renewal package to take part in the Surface Transportation Project Delivery Program in December 2023. The package contained several amendments altering the department’s powers and responsibilities. Significant changes to the agreement include:

  • Retracted references to rescinded regulations from the White House Council on Environmental Quality.
  • Expediting decision-making processes through the department’s internal system to document the NEPA approval process notifying the Federal Highway Administration (FHWA) of the state’s decisions.
  • No longer requiring FHWA as a part of programmatic agreements.
  • Removing reporting requirements related to performance measures, an annual self-assessment and regular monthly reporting.

Texas lawmakers have stated that these alterations will allow the state to meet transportation challenges caused by explosive population growth. With more than 31 million people now residing in the state, TxDOT will receive the permitting power needed to streamline and execute infrastructure projects to satisfy demand.

Photo by ROMAN ODINTSOV from Pexels

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