Two of the proposals, developed jointly with the National Marine Fisheries Service, would restore 2019-2020 language that uses a two-step analysis to designate habitat as "unoccupied," and allow agencies to include economic-impact information in the preambles of endangered species listings, without allowing these impacts to drive listing decisions. 

Interior officials said the revisions are intended to “restore clarity” and reduce legal exposure following Loper Bright, which ended Chevron deference, where courts typically deferred to agencies' interpretations of ambiguous language in federal laws.

The Associated General Contractors of America said it is reviewing the proposals but noted that the revisions appear to restore ESA reforms the group supported during the Trump administration. 

“We advocate for a sensible and balanced approach to species protections that limits uncertainty or speculation and facilitates infrastructure projects to move forward in an expedited manner,” said Brian Turmail, AGC vice president of public affairs and workforce. He said the group will closely analyze the details during the comment period.

Environmental groups immediately criticized the Trump administration's action. In a Nov. 19 statement, the Endangered Species Coalition said the proposals “amount to an extinction plan for our most treasured wildlife,” arguing they would sharply constrain how agencies account for habitat loss and climate-related threats. 

The first proposal would restore 2019 rules governing how the Fish and Wildlife Service and NOAA determine whether a species is endangered or threatened and how critical habitat is designated. The reinstated framework allows agencies to include economic-impact information in listing preambles—without allowing those impacts to drive decisions—and reestablishes the two-step analysis required to designate “unoccupied” habitat.

The proposed listing revisions could reduce the extent of critical-habitat overlays on long-linear infrastructure—including interstate transmission lines, pipelines and highway corridors—by limiting when areas outside a species’ current range may be added. Rules finalized in 2024 expanded the use of unoccupied habitat and applied a broader interpretation of the “foreseeable future,” partly to account for climate-driven risks.

A second proposal would revert Section 7 consultation definitions to 2019 language, removing 2024 provisions that broadened indirect and cumulative effects and authorized “offset” mitigation within the consultation framework. Restoring the earlier definitions of “effects of the action” and “environmental baseline” would narrow the scope of analysis federal agencies must complete before permitting or funding major projects, potentially reducing modeling requirements outside the project footprint.

Defenders of Wildlife said the change “will make recovery for many threatened and endangered species that much more difficult,” asserting that narrowing effect analyses could cause agencies to overlook habitat pressures during consultation.

For state DOTs, transit agencies, water utilities, renewable-energy developers and federally funded dam and levee sponsors, a restored Section 7 framework could shorten timelines by reducing analytical complexity. Interior says the 2019 definitions are more defensible under Loper Bright, which directs agencies to apply the statute’s “single best reading” without relying on judicial deference.

A third proposal would eliminate the Fish and Wildlife Service’s blanket 4(d) rule for threatened species and require species-specific 4(d) rules for all new threatened listings. NOAA already uses a species-specific approach. For project sponsors, more tailored 4(d) rules may create clearer allowances for routine activities, although the approach may lengthen the time between a listing and issuance of applicable conditions.

The final proposal would reinstate a 2020 rule governing how economic and national-security impacts are weighed when determining whether to exclude areas from critical habitat. The framework requires the services to document when they decline recommended exclusions—an issue closely watched by transmission and pipeline developers seeking to limit restrictions along established utility rights-of-way.

The National Parks Conservation Association said the proposed approach “ignores the will of the American people by decimating protections for species that depend on national park ecosystems,” warning that reduced habitat designations could increase extinction risk.

Implications for Infrastructure Agencies and Next Steps

The package arrives as federal agencies continue to manage heavy ESA consultation workloads. Fish and Wildlife Service data show thousands of informal and formal consultations completed each year, with timelines driven by data sufficiency and coordination with NEPA and Clean Water Act reviews.

Reinstating the 2019–2020 framework may provide greater predictability for U.S. Army Corps of Engineers civil-works reviews, BLM rights-of-way, interstate transmission permitting and FHWA/FTA program approvals.

How the proposals align with ongoing federal efforts to coordinate NEPA and ESA reviews—such as FAST-41 processes or One Federal Decision—remains unclear. Interior has not issued guidance on how consultations initiated under the 2024 rules should be handled once the new regulations are finalized, creating potential uncertainty for projects already in mid-review.

All four proposed rules appeared in the Federal Register’s public-inspection file on Nov. 19, with a 30-day comment period opening Nov. 21. Comments must be submitted to regulations.gov using dockets FWS-HQ-ES-2025-0039 (Section 4), 0044 (Section 7), 0029 (Section 4(d)) and 0048 (Section 4(b)(2)).

Environmental groups have signaled they will oppose the revisions during the comment period and, if finalized, in court.

Industry organizations beyond AGC had not issued formal statements as of press time, but have historically supported narrower Section 7 standards and more predictable critical-habitat exclusion procedures.

A final rulemaking schedule has not been released.