WASHINGTON—President Barack Obama is under increased pressure to decide the fate of the Keystone XL pipeline after a Nebraska court on Friday threw out a challenge to the long-disputed project and the House passed a bill approving it.

Since last April, the Obama administration has cited the court case over the pipeline’s proposed route through Nebraska as the reason Mr. Obama hasn’t acted on the project. Administration officials have also pointed to a continuing State Department review to explain Mr. Obama’s threat to veto...