U.S. Senators introduce bipartisan comprehensive permitting reform package with major county wins

Key Takeaways

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

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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.