Interim 2025 NEPA guidance for HUD grantees
National Environmental Policy Act (NEPA) practitioners are accustomed to changes in regulations and guidance that govern their work. However, the magnitude of recent changes has impacted, and will continue to impact, how practitioners comply with NEPA.
One of the first regulatory actions under the current administration was the rescission of binding regulations issued by the Council on Environmental Quality (CEQ), requiring individual federal agencies to establish their own NEPA implementing procedures by February 2026.
Given the U.S. Department of Housing and Urban Development’s (HUD) longstanding practice of delegating NEPA authority to grantees—designated as Responsible Entities (REs)—HUD entered this transition with a large number of templates and guidance documents that will also need to be updated. While HUD’s formal update to its NEPA implementing procedures is still pending, REs must continue to conduct NEPA reviews in accordance with existing requirements to maintain program compliance and support their communities.
In response to the growing demand for clear guidance and proven best practices, we're sharing how REs can ensure compliance with HUD requirements.
HUD specific changes
By February 2026, federal agencies that have not yet released updated NEPA implementing procedures will be required to do so under the revised federal timeline. Agencies that have already issued new procedures are actively working to align their internal processes with recent regulatory changes.
Some changes, such as those related to floodplains management, require a rulemaking process to alter existing requirements. Others, including Environmental Justice and climate change, have been removed from formal consideration. Despite these shifts, the prevailing recommendation across agencies is to maintain current practices and await further guidance.
HUD has recently issued revised NEPA forms. However, many templates still reference outdated requirements, creating confusion for grantees.
Key takeaways:
- Identify outdated references in HUD templates.
- Replace obsolete language with updated, policy-compliant alternatives.
- Document all revisions to ensure transparency and defensibility.
Federal flood risk
In 2021, EO 14030 reinstated a previous executive order that established the Federal Flood Risk Management Standard (FFRMS). HUD published its final rule implementing the FFRMS in April 2024, with a compliance date of June 24, 2024. HUD’s rulemaking formally adopted the FFRMS and requires applicants to demonstrate compliance with its provisions.
On January 20, 2025, President Trump issued EO 14148, which rescinded EO 14030 among many others. While the requirements largely remain in effect because FFRMS was implemented through formal rulemaking, HUD rescinded the FFRMS for new Federal Housing Administration-insured construction in June 2025.
Key takeaways:
- Confirm that FFRMS applies to your program.
- Continue to demonstrate compliance with FFRMS, where applicable, and HUD’s floodplain management requirements under 24 CFR Part 55.
Radon
On January 11, 2024, HUD issued Notice CPD-23-103, Departmental Policy for Addressing Radon in the Environmental Review Process. The notice clarified that radon must be considered as part of the site contamination analysis for projects subject to environmental review under 24 CFR Parts 50 and 58. This requirement applies to multifamily housing, rehabilitation, and new construction projects, among others.
The policy became effective on April 11, 2024, for all non-Tribal HUD recipients. For Tribal recipients, including Tribally Designated Housing Entities and Department of Hawaiian Homeland recipients, compliance is required beginning January 11, 2026.
While the notice does not mandate radon testing, it outlines best practices and alternative strategies for evaluating radon risks. HUD recommends mitigation if radon levels exceed the Environmental Protection Agency action level of 4.0 picocuries per liter. The policy does not apply to projects classified as Categorically Excluded Not Subject to review, nor to buildings with no enclosed ground-contact areas or those not occupied for more than four hours per day.
Key takeaways:
- Consider radon in all environmental reviews not certified before the effective date.
- Decide if you will consider radon for Tier II reviews if the Tier I review was certified before April 11, 2024 (HUD strongly encourages it). If Tier I remains uncertified, both Tier I and Tier II reviews must comply.
Environmental justice
On January 21, 2025, President Trump issued EO 14173, which rescinded EO 12898 of February 11, 1994, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations. This is the original administrative directive for the consideration of environmental justice in federal actions. With EO 14173 and other EOs, the Trump administration has rescinded all executive orders supporting consideration of environmental justice.
HUD has issued revised templates that remove the compliance determination section for environmental justice and the environmental assessment factors sections for environmental justice and climate change.
Key takeaway:
- Use these revised templates for Categorical Exclusions and Environmental Assessments.
Cultural resources
Federal agencies typically comply with Section 106 of the National Historic Preservation Act (54 U.S.C. § 306108) by following a four-step process outlined in 36 CFR Part 800:
- Initiate consultation
- Identify historic properties
- Assess effects
- Resolve adverse effects
On December 20, 2024, the Advisory Council on Historic Preservation (ACHP) issued the Program Comment on Certain Housing, Building, and Transportation Undertakings. This broad alternative supports federal efforts to: rehabilitate and produce affordable, accessible, energy-efficient housing; upgrade infrastructure in historic neighborhoods; improve resilience and reduce energy costs; and expand access to transportation.
Because the Program Comment applies to housing and building projects it creates an opportunity to streamline the typical Section 106 process for federal agencies funding housing projects, including but not limited to HUD, U.S. Department of Agriculture Rural Housing Service and Rural Business-Cooperative Service, Bureau of Reclamation, and the Department of Defense.
Key takeaway:
- Bypass the full four-step consultation if your project has negligible or low potential to affect historic buildings or archaeological sites, as long as the federal agency adopts the Program Comment and notifies ACHP.
Wherever NEPA goes next, ICF is here to help
Over the past several administrations, change has been the one consistent theme for NEPA. While EOs can be an effective tool for setting priorities, they are also subject to reversal by subsequent administrations, as seen in recent shifts in environmental policy.
At ICF, we support states and entitlement jurisdictions nationwide as they navigate evolving NEPA implementing procedures including Community Development Block Grant (CDBG) and CDBG-Disaster Recovery (CDBG-DR) programs. ICF will continue to closely follow these many potential changes and can help HUD grantees navigate uncertainty by offering actionable strategies that ensure compliance and protect funding.