Skip to main content

Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About
Trending Topics
    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • Contact Us
    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Entertainment & Sports
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor, Employment, and Benefits
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations
    Industries

    View All

    • Advanced Manufacturing and Industrials
    • Art and Cultural Property
    • Aviation
    • Cannabis
    • Consumer
    • Energy
    • Entertainment & Sports
    • Financial Institutions
    • Healthcare
    • Higher Education
    • Infrastructure
    • Nonprofit Organizations
    • Real Estate
    • Sports & Stadiums
    • Technology
    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Environmental, Social, and Governance (ESG)

      We help clients create positive return on investments in people, products, and the planet.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    • Women in Dealmaking

      We provide strategic counsel on complex corporate transactions and unite dynamic women in the dealmaking arena.

    1. Home
    2. Insights
    3. Alerts
    4. USDOT “Freedom to Drive”: P3s take center stage in federal highway congestion strategy

      Alerts

    Alert / Infrastructure

    USDOT “Freedom to Drive”: P3s take center stage in federal highway congestion strategy

    April 22, 2026

    LinkedInX (Twitter)EmailCopy URL

    USDOT’s new Freedom to Drive Initiative puts public-private partnerships (P3s) at the center of a national push to clear highway bottlenecks.

    What’s the impact?

    • States are being asked by the USDOT to rapidly identify their worst chokepoints and deliver actionable improvement plans, which could translate into near-term P3 procurements.
    • For developers, investors, and lenders, the initiative increases the likelihood of federal credit support (including via the Build America Bureau/TIFIA), with more standardized value-or-money analysis improving deal predictability.
    • The administration’s explicit endorsement of “choice lanes” and dynamic pricing provides political and commercial momentum for tolled managed-lane structures, making the embrace of such structures a near-term differentiator for state DOTs and bidders.

    DOWNLOAD

    USDOT "Freedom to Drive": P3s take center stage (PDF)

    Authors

    • Roderick N. Devlin

      Counsel
      • New York City +1 212.940.3737
      • rdevlin@nixonpeabody.com
      Roderick N. Devlin

    On April 20, 2026, US Department of Transportation (USDOT) Secretary Sean P. Duffy and the Federal Highway Administration (FHWA) launched the Freedom to Drive Initiative, a national effort calling on states to collaborate with the federal government to eliminate traffic bottlenecks across America. The announcement is significant for public and private infrastructure stakeholders alike: it places public-private partnerships (P3s) squarely at the center of the administration's congestion-relief agenda and signals an expanding pipeline of federally supported highway and managed-lane projects that will require private capital, innovative financing, and sophisticated procurement structures.

    What the Freedom to Drive Initiative does

    The Freedom to Drive Initiative asks each state governor to identify two to five of the state's worst congestion bottlenecks and to develop actionable plans to address them in partnership with USDOT. The initiative is built on three pillars:

    • Maximizing existing roadway capacity
    • Fast-tracking projects that alleviate congestion chokepoints, and
    • Leveraging American technology and private-sector partnerships

    Secretary Duffy's related April 20 letter to state governors emphasized the administration's commitment to moving away from what it characterized as “stop-and-go” policies and toward “high-performance, high-efficiency solutions.”

    Deputy Transportation Secretary Steven G. Bradbury framed the initiative as a model for “public and private sector collaboration to bring real relief to American families,” while FHWA Administrator Sean McMaster called on every governor to join the effort, emphasizing “local solutions that serve all road users, instead of federal bureaucrats favoring one mode of travel over another.”

    To support state efforts, FHWA has launched a dedicated Freedom to Drive website as a central resource for technical tools and congestion-relief strategies.

    The Scale of the Highway Congestion Problem, and the Infrastructure Development/Investment Opportunity

    The USDOT's data underscores the magnitude of the congestion challenge and, by extension, the scale of the opportunity for P3 delivery:

    America is home to 10 of the 25 most congested cities in the world. In 2024, the average urban auto commuter spent 63 hours stuck in traffic, translating to an estimated $269 billion in lost productivity nationwide. The congestion problem is not limited to major metropolitan areas; rural communities also face transportation disruptions from crashes, severe weather, and recreational travel.

    USDOT estimates that rebuilding America's aging highway infrastructure will cost nearly a trillion dollars. The announcement explicitly states that “leveraging private sector partnerships allows taxpayer dollars to go further while delivering new transportation infrastructure safely and efficiently.” This scale of infrastructure funding underscores the central role that P3s are expected to play in the nation’s transportation future.

    The Georgia SR 400 Express Lanes Project: A P3 Blueprint

    The FHWA announcement highlights the Georgia SR 400 Express Lanes P3 Project as a model for the kind of state-federal-private partnership the Freedom to Drive Initiative is designed to encourage. In August 2025, USDOT announced a Build America Bureau loan of up to $3.89 billion to a P3 among the Georgia Department of Transportation (GDOT), the State Road and Tollway Authority (SRTA), and SR 400 Peach Partners, LLC. The project will add new express lanes in both directions along a 16-mile section of SR 400.

    The projected results illustrate the kinds of outcomes the administration intends to replicate nationwide: a reduction in delays of over 19,000 hours per day, an estimated 8% reduction in traffic incidents, and new bridges and safety improvements. The new express lanes will be tolled using dynamic pricing to manage demand and maintain reliable trip times, while existing general-purpose lanes will remain free—a “choice lanes” model that has proven politically and commercially viable in other P3 managed-lane transactions across the country.

    Broader P3 Momentum at USDOT: The transportation infrastructure finance and innovation act (tIFIA), the Build America Bureau, and Beyond

    The Freedom to Drive Initiative does not exist in a vacuum. It is part of a broader and accelerating embrace of P3 delivery by the current administration. In early April 2026, Secretary Duffy publicly endorsed the creation of a dedicated P3 task force or office within USDOT, stating that “[w]e needs private capital.” The Bond Buyer reported that Duffy said he “loves the idea” of setting up a better office to facilitate more P3 projects. USDOT has also recently released final value-for-money guidance for P3 transactions, providing states and their private partners with a more predictable analytical framework for evaluating P3 delivery options.

    Taken together, these developments suggest that the federal government is positioning itself not merely as a funder of highway projects, but as an active facilitator and partner in P3 transactions, through TIFIA and other Build America Bureau credit programs, through streamlined environmental review and permitting, and through technical assistance to states evaluating P3 procurement.

    What the Freedom to Drive Initiative means for infrastructure developers, investors, and state DOTs

    The Freedom to Drive Initiative should be closely watched by state DOTs, infrastructure developers, equity investors, lenders, and their advisors. Several practical implications stand out.

    • A growing project pipeline. With governors now asked to identify their worst bottlenecks and develop actionable plans, the initiative could produce a near-term pipeline of candidate projects across the country, many of which will be strong candidates for P3 delivery, particularly managed-lane, express toll lane, and congestion-priced corridor projects.
    • Federal credit support. The GDOT SR 400 project demonstrates that the Build America Bureau is prepared to deploy substantial TIFIA and other credit assistance to support P3 transactions. States responding to the Freedom to Drive Initiative should consider engaging early with the Bureau on credit eligibility and structuring.
    • Emphasis on tolling and dynamic pricing. The initiative's embrace of dynamic pricing, as a demand-management tool (with free general-purpose lanes alongside tolled express lanes), provides political cover for states that may have been hesitant to pursue tolled P3 models. The “choice” framing is deliberate and likely to be widely replicated.
    • Procurement and legal readiness. States that respond to Secretary Duffy's call will need enabling legislation (in states that do not already have P3 authority), well-structured procurement frameworks, experienced advisors, and sophisticated risk-allocation strategies. The window between gubernatorial identification of priority bottlenecks and federal engagement may be short, and states that are already P3-ready will have a significant advantage.
    • Private capital positioning. For infrastructure developers, funds, and construction firms, the Freedom to Drive Initiative signals the time to begin evaluating potential project opportunities in states likely to respond to it. Relationships with state DOTs and toll authorities will be critical.

    Conclusion: A new era for P3s in US highway infrastructure

    The USDOT Freedom to Drive Initiative is the clearest signal yet that the current administration views P3 delivery as a core tool, not a secondary option, for addressing the nation's highway infrastructure needs. With nearly a trillion dollars in estimated infrastructure costs and a federal government that is actively encouraging private-sector participation through TIFIA loans, Build America Bureau credit support, and streamlined procurement guidance, the stage is set for a significant expansion of the P3 highway and managed-lane sector.

    Practices

    InfrastructureProject FinancePublic-Private Partnerships (P3)Public Finance

    Industries

    Infrastructure
    The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • Contact Us
    • Cookie Preferences
    • Privacy Policy
    • Terms of Use
    • Accessibility Statement
    • Statement of Client Rights
    • Supplier Code of Conduct
    • Nixon Peabody International LLP
    • PAL
    © 2026 Nixon Peabody. All rights reserved