U.S. Senate releases updates to Bipartisan American Affordability and Jobs Act ahead of anticipated vote

Key Takeaways

 

NACo Legislative Analysis
Read NACo's full analysis of the Bipartisan American Affordability and Jobs Act of 2026.

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Update Nov. 9: On Nov. 7, the U.S. Senate authors of the Bipartisan American Affordability and Jobs Act (BAAJA: S. 5653) released an “amendment in the nature of a substitute” (ANS) containing changes to several provisions ahead of the bill’s expected cloture vote scheduled for Monday, Nov. 9. 

NACo engaged with congressional leaders to share how the bill's original text would impact counties, and the amendment includes several provisions that benefit counties. The ANS maintains core county wins in the legislation, including codifying counties as cooperating agencies during NEPA reviews, and makes targeted adjustments to some sections that impact counties. 

Relevant changes are detailed below:

Broadband

The ANS excludes federally-funded broadband projects from NEPA review if they are in a right-of-way that was already subject to an environmental analysis. Additionally, the original text of BAAJA included an exemption for the repair or replacement of lifeline infrastructure, including telecommunications facilities, provided that the replacement does not increase capacity by more than 20 percent. The bill amends this existing exclusion to clarify that replacing or repairing the cable in wireline communications infrastructure is not subject to that limit.

Brownfields 

The ANS adds reauthorization of the U.S. Environmental Protection Agency’s (EPA) Brownfields program through fiscal year (FY) 2031. The Brownfields program would receive $200 million annually and individual award amounts for remediation grants would increase from $500,000 to $1 million, multipurpose grant awards would increase from $1 million to $2 million. Additionally, 501(c)(6) organizations, such as non-profit associations and chambers of commerce, would become eligible recipients of brownfields funds. 

EPA’s Brownfields program is historically successful and helps counties redevelop underutilized and contaminated sites to reinvigorate communities and local economies. 

Data Centers

The ANS would create a new Data Center Community Assistance Program within the U.S. Department of Energy (DOE). Under this program, counties would be able to request technical assistance from DOE about potential energy, water and economic development impacts of data center developments. DOE is explicitly prohibited from interfering with local siting or zoning decisions through the program.
Historic Preservation

The ANS would make substantive changes from the original text’s reforms to the National Historic Preservation Act (NHPA). The amendment would strengthen BAAJA’s original proposed federal consultation requirements with counties, other local governments and Tribes. Federal agencies would be required to consult with local stakeholders to decide if the action under review would have an impact on historical properties.

The ANS additionally clarifies a requirement that the federal agency consult and collaborate with counties and other stakeholders as the agency studies the scope of an undertaking’s effects on historic properties.

Transportation

The original BAAJA text would have exempted “grants (including capitalization grants), cost-share awards, or other forms of financial assistance where a Federal agency does not exercise predominant control and responsibility over the subsequent use of such financial assistance or the environmental effect of the action” from NEPA. Grants from the U.S. Department of Transportation (USDOT) would not have met this criterion, however, because the USDOT typically “exercises predominant control and responsibility” over the use and outcome of the funding.

The ANS would amend this and clarify that USDOT would not be considered to have “predominant control and responsibility” over projects receiving less than $10 million in funding from the department. This would mean that many smaller, grant-funded projects would now be able to take advantage of the NEPA exemption the bill would create.

Additionally, the original BAAJA text said that projects “for which the only Federal involvement is a loan guarantee or loan” would also not be subject to NEPA. The ANS would add the stipulation that loans made under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program and the Railroad Rehabilitation and Improvement Financing (RRIF) program would still be subject to NEPA. This addition is due to the fact that TIFIA and RRIF largely finance major infrastructure projects that do have significant environmental impacts requiring more thorough scrutiny.

Other Changes

The ANS adds provisions from the proposed bipartisan Wildfire Emissions Prevention Act (S. 5045). The additions would streamline the process for prescribed burns as a tool for active forest management. This bill had previously passed the Senate unanimously.

Next Steps

BAAJA remains scheduled for an initial vote on Nov. 9, when the U.S. Senate will vote on the ANS. NACo continues to support this important legislation, which delivers long-needed commonsense reforms to the federal permitting process while advancing county priorities.
County leaders can reach out to their Senators to urge them to vote “Yes” on the Bipartisan American Affordability and Jobs Act.

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ORIGINAL UPDATE: On Sep. 30, the leaders of the U.S. Senate Environment and Public Works Committee and the Senate Energy and Natural Resources Committee introduced the Bipartisan American Affordability and Jobs Act of 2026 (S. 5653), a comprehensive, bipartisan permitting reform package that would make major changes to several federal environmental protection statutes.

After continued engagement from NACo, the package contains a major win for counties by codifying counties as a cooperating agency during National Environmental Policy Act (NEPA) reviews. The legislation also proposes process reforms to expedite project delivery, permit certainty provisions for major projects and adjustments to the Endangered Species Act. 

“Counties are on the front lines of delivering the energy, water and transportation infrastructure projects that residents depend on,” said National Association of Counties Executive Director Matthew Chase. “The Bipartisan American Affordability and Jobs Act recognizes counties as cooperating agencies in federal environmental protection statutes. This legislation would modernize the federal permitting process, reduce unnecessary delays, accelerate project delivery and ensure local expertise is incorporated into federal decision-making. Counties applaud Senators Lee, Heinrich, Capito and Whitehouse for their leadership and urge Congress to advance this bipartisan permitting reform package.”

What does the package cover?

The legislation covers several major federal statutes and policy priorities:

• National Environmental Policy Act (NEPA)
• Endangered Species Act (ESA)
• National Historical Preservation Act (NHPA)
• Clean Water Act (CWA)
• Federal Power Act (FPA)
• Public lands energy and mineral laws
• Permitting certainty

Counties frequently interact with these statutes during the construction of projects supported by federal funds or sited on federal lands as both cooperating agencies and project sponsors or proponents. The proposed changes will have major impacts on county projects such as housing, broadband, transportation infrastructure and waterworks as well as benefits for public lands counties.

County provisions

National Environmental Policy Act (NEPA): The legislation would redefine cooperating agencies to include “county, borough, parish, city and any other political subdivisions of a state,” ensuring that counties could submit comments, data and scoping information during the NEPA review process. This reform addresses recent inconsistency and lack of clarity in federal agencies’ NEPA regulations and would achieve a major county priority for permitting reform.As cooperating agencies, counties can work with federal agencies to conduct environmental reviews, helping identify and address issues early in the process.

The bill would narrow the definition of “major Federal action” which require NEPA reviews. Projects would no longer be considered a major federal action solely because they receive federal grant or loan funding. Additionally, the bill would exempt the replacement of lifeline infrastructure from that definition – including public works, transportation facilities, waterworks and more.  

The bill sets clear, actionable deadlines for all steps of the environmental review process.

Endangered Species Act (ESA): The Bipartisan American Affordability and Jobs Act would adjust the ESA, including a durable definition of “best available scientific and commercial data” and a requirement that the U.S. Fish and Wildlife Service (USFWS) consider state-contributed data during consultations. It also shortens review timelines.

Permitting Certainty: The legislation would ensure permit certainty for infrastructure projects by preventing the federal government from rescinding permits for projects previously authorized.

Federal lands projects: The bill would make changes that expedite federal decision making for projects on federal lands, including streamlining the permitting of projects related to federal agencies’ multiple-use missions.

Ratepayer Protection: The bill would prevent data centers from passing those costs down to ratepayers by requiring data centers to cover the full cost of electrical grid infrastructure upgrades. As data center development has increased, counties support the responsible management of grid infrastructure to prevent ratepayers from shouldering the costs of upgrades.

Next Steps

The bill now awaits consideration by the U.S. Senate. 

In December 2025 the U.S. House passed a NEPA reform bill, the Standardizing Permitting and Expediting Economic Development (SPEED) Act (H.R. 4776), with a bipartisan 221-196 vote. A companion version to the Bipartisan American Affordability and Jobs Act is unlikely to be introduced in the U.S. House at this time.