Senate bill proposes major changes to federal infrastructure permitting

Detailed Explanation

Four U.S. senators introduced S. 5653, the Bipartisan American Affordability and Jobs Act of 2026, on Sept. 30, proposing broad changes to federal environmental review and permitting. The bill would narrow the projects subject to review under the National Environmental Policy Act (NEPA), including certain projects with no or minimal federal funding and some replacements of lifeline infrastructure such as roads, bridges, water and sewer systems. It also proposes one-year deadlines for environmental assessments and two-year deadlines for environmental impact statements, and would include local governments in federal review processes. These are proposed changes, not current law. The bill was referred to the Senate Energy and Natural Resources Committee.

Other provisions would limit federal agencies’ ability to suspend, materially change or rescind permits after they are granted; accelerate permitting for energy projects on federal land; and require data centers to pay for their transmission costs. The bill’s sponsors frame the proposal as a way to speed infrastructure construction and improve energy affordability. Smart Cities Dive’s coverage describes local government groups’ support for a more efficient process alongside concerns about maintaining local authority and a seat in project decisions.

For cities and counties, the proposal could affect the pace and scope of federal environmental review for public works, local participation in federal decisions, and the costs assigned to large data-center projects on the electric grid. Any practical effect depends on whether Congress advances the bill, the final text, and how agencies implement it. The introduction of S. 5653 does not itself change current permitting rules.