The US Department of Energy has offered $73 million (£48m) as compensation to the state of New Mexico for a nuclear waste accident last year.
Leaks at the Waste Isolation Pilot Plant (WIIP) in February 2014 exposed workers to radiation.
The site is the DOE’s only permanent underground disposal facility for certain types of waste from US nuclear laboratories.
Instead of paying fines, DOE will provide the funding for a number of road and other infrastructure projects in New Mexico, including upgrading critical water infrastructure and waste transportation routes.
Energy Secretary Ernest Moniz said: “I am pleased we were able to find a solution that will allow the Department to focus on resuming operations at WIPP and improving our waste management operations while providing benefit to the environment and to local communities in New Mexico.”