Federal Wetlands Oversight Returns to Florida
A recent ruling by the U.S. Circuit Court of Appeals in Washington, D.C. has significant implications for anyone involved in development, permitting, or mitigation banking in Florida.
On March 27, 2026, the court upheld a 2020 decision finding that the EPA and the U.S. Fish and Wildlife Service violated the Endangered Species Act when they approved Florida’s state-run wetlands permitting program. The ruling returns oversight of Section 404 Clean Water Act permits — those governing development in wetlands — to the federal government, specifically the U.S. Army Corps of Engineers.
Background
In 2020, the first Trump administration transferred control of wetland building permits from the federal government to the state of Florida. Environmental groups sued, arguing the move lacked adequate safeguards for endangered species and their habitats. U.S. District Judge Randolph Moss sided with the plaintiffs, and the appeals court has now confirmed that ruling.
Florida is one of only two states to have ever received assumption of the federal 404 program. As of the early 1990s, only about half of the state’s original 20.3 million acres of wetlands remain, according to the U.S. Fish and Wildlife Service.
Two Perspectives
Environmental advocates argue the ruling is a necessary protection for species like the Florida panther, which depend on wetland corridors for survival. They contend that state-run permitting created a faster track for wetland development that put those ecosystems at risk.
Developers and state officials have historically supported state assumption of the 404 program, arguing it reduces permitting timelines and streamlines the process for projects that need to move quickly.
Both perspectives reflect the central tension in Florida’s development landscape: the pressure to accommodate growth while preserving natural resources that support water quality, flood protection, and biodiversity.
What This Means for Mitigation Banking
For the mitigation banking industry, this ruling has a few notable implications.
Federal permitting under the Army Corps of Engineers typically involves more rigorous review than the state-run process that was in place. That means developers impacting wetlands in Florida will need to meet federal standards and in many cases will be required to purchase mitigation credits from federally permitted banks to satisfy those requirements.
View current mitigation credit pricing and availability for Florida banks.
For landowners and developers currently in the permitting process or planning future projects, the key takeaway is this: federal oversight is back, and understanding which mitigation banks can service your project area is more important than ever. Visit our FAQs and Resources page for permit portals, drainage basin maps, and RIBITS access.
At The Mitigation Banking Group, we track regulatory changes and their impact on credit availability and permitting requirements across Florida. If you have questions about how this ruling affects your project, contact Victoria Bruce for guidance on service areas, available credits, and permit compliance.
Source: Federal jurisdiction over developing Florida’s wetlands is upheld — Steve Newborn, WUSF, March 27, 2026
