PolicyBrief
H.R. 3845
119th CongressJun 9th 2025
To amend the Endangered Species Act of 1973 to expand the exemption process under section 7 of that Act with respect to national security and significant adverse national or regional economic impacts.
IN COMMITTEE

This bill expands the exemption process under the Endangered Species Act to allow federal agencies to seek relief if compliance threatens national security or causes significant adverse national or regional economic impacts.

Adam Gray
D

Adam Gray

Representative

CA-13

LEGISLATION

New ESA Bill Allows Agencies to Skip Species Protection Citing 'Major Economic Harm' or 'National Security'

This legislation aims to significantly expand the ways federal agencies, state governors, or even permit applicants can bypass environmental protections under the Endangered Species Act (ESA). Specifically, it amends Section 7 of the ESA to allow an exemption from rules protecting endangered species if complying with those rules would cause significant adverse national or regional economic impacts or hurt national security.

The Fine Print: New Reasons to Skip the Rules

Currently, if a federal project or action is likely to harm a protected species, the agencies involved have to find a reasonable alternative that avoids that harm. This bill introduces two major new loopholes for seeking an exemption if finding that alternative is deemed too costly or too risky. Think of a massive infrastructure project or a new energy development—if the environmental requirements add too much cost, the project proponent can now try to argue that compliance itself would cause 'major economic harm' to the region, triggering a review for exemption.

When an agency applies for this exemption, they still have to show they tried to work in good faith and didn't waste resources before applying. However, the final decision committee—the one that decides whether the exemption is granted—now has to weigh findings from the National Security Council (for security claims) and the Director of the National Economic Council (for economic claims). This means the focus shifts away from purely biological and environmental considerations toward high-level economic and security assessments, potentially making it easier to prioritize large-scale projects over habitat protection.

Who Pays the Price?

This change has massive implications because the terms 'significant adverse national or regional economic impacts' are pretty vague. They lack clear, measurable thresholds. For instance, if a new factory or mining operation is blocked because it threatens a local watershed essential for an endangered fish, the company could argue that the resulting job losses constitute a 'regional economic impact,' justifying an exemption. This essentially creates a mechanism where economic expediency can trump environmental law.

For regular people, this means that projects that might have been stopped or redesigned to protect local ecosystems—like wetlands, clean water sources, or critical habitats—could now move forward under the banner of economic necessity or national security. If you live near a proposed development, your local environment and quality of life could be impacted because the federal government decided the economic benefit of the project outweighed the cost of losing a protected species or its habitat. The bill makes it easier for agencies to claim that any alternative that isn't the most profitable or efficient option is simply 'unreasonable' due to cost.

The Trade-Off: Security vs. Habitat

While the bill could potentially speed up genuinely critical national security projects that face environmental hurdles, the risk of abuse is high. Developers or agencies could broadly invoke these wide-ranging justifications—economic harm or national security—to bypass essential environmental reviews for profitable projects. By giving significant weight to economic and security council findings, the bill reduces the role of objective, independent scientific review that is supposed to be the core of the ESA process. In short, this bill makes it easier to sacrifice environmental protection when a powerful entity can make a compelling—but potentially vague—case that it’s simply too expensive or too sensitive to follow the rules.