Lincoln, Nebraska – The Nebraska Department of Transportation has secured $15 million in federal funding to support critical transportation improvements across Nebraska, part of a broader $93.4 million in congressional appropriations aimed at improving mobility statewide.
The funding comes through Congressional Directed Spending in the Transportation, Housing, and Urban Development section of the Fiscal Year 2026 Consolidated Appropriations Act. NDOT officials say the dollars will support three major infrastructure projects designed to improve safety, strengthen freight movement, and enhance regional connectivity.
Omaha viaduct replacement supports freight and local travel
NDOT received $5 million to help fund the 38th Street viaduct project in Omaha along U.S. Highway 275, also known as L Street. The project will replace an aging viaduct that carries four lanes of traffic and provides pedestrian access between 42nd and 36th streets.
The viaduct serves as a vital route in South Omaha, connecting neighborhoods, schools, parks, and local businesses, including meat processing facilities central to Nebraska’s agricultural economy. It also supports regional and national freight traffic along a key corridor linking communities across the Missouri River and supporting goods movement throughout eastern Nebraska.
Safety upgrades planned for Fairbury and Chadron corridors
Another $4 million will fund improvements to U.S. Highway 136 in Fairbury. The project will replace aging concrete pavement and reconfigure the roadway into a three-lane highway with a center two-way left-turn lane. Officials say the redesign will reduce conflict points, slow traffic speeds, and improve safety.
Sidewalks will be added on both sides of the highway to improve safety for pedestrians and bicyclists. The changes are also expected to make intersections safer for vehicles entering from side streets.
NDOT also received $6 million for improvements to the Chadron North segment of U.S. Highway 385 near Chadron. The project will upgrade 17 miles of highway to a Super-2 design — a two-lane roadway with paved shoulders and additional passing lanes. Planned work includes intersection reconstruction and bridge repairs.
Officials say the added passing lanes will improve traffic flow and reduce delays caused by heavy truck volumes and rolling terrain while strengthening regional commerce between Chadron and South Dakota.
“Each of these projects addresses real needs across Nebraska, from aging bridges to highway improvements” NDOT Director Vicki Kramer said. “We appreciate the Nebraska congressional delegation’s support in securing these funds, specifically Rep. Don Bacon and Senator Deb Fischer. Their efforts will help NDOT deliver improvements that enhance safety and economic opportunity for years to come.”
Supporting local infrastructure and community connectivity
Beyond statewide projects, NDOT has supported local agencies seeking federal grants through the Nebraska Infrastructure Hub. The hub assists communities by providing letters of support, helping with applications, and managing grants once awarded.
Working directly with Sheridan County, the hub helped secure nearly $3.5 million for a road rehabilitation project. The project will rehabilitate a 28.5-mile rural corridor connecting residents, ranching operations, and emergency services to Nebraska Highways 2 and 87, improving safety and connectivity.
NDOT Aeronautics also assists airport sponsors in developing funding requests for safety-critical infrastructure needs.
Nebraska has received more than $121 million in transportation-related congressional delegations from 2022 through 2024, bringing the total awards since 2022 to more than $214 million. Officials say the continued investment strengthens infrastructure, improves safety, and supports economic growth in communities across the state.
