Less than four months remain in this legislative session. The clock is ticking to pass comprehensive permitting reform. If lawmakers want to address affordability, which remains the No. 1 issue voters care about, they will prioritize creating a clearer path for building major projects. The federal permitting process is fraught with a complex regulatory framework and red tape that stymies much-needed infrastructure. We need meaningful improvements.
A handful of worthwhile bills currently sit in various legislative stages. The House passed the SPEED Act and PERMIT Act late last year. The Senate’s American Energy and Mineral Infrastructure Act is gaining momentum. But this legislation does no good if left stranded. What can’t happen is for negotiations to stall and/or completely fail. Time is of the essence.
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The midterm elections will shift congressional dynamics. Control of the House or Senate could change. New membership and new leaders could have different priorities, and past efforts and compromises would completely unravel. Any new Congress would have to start the complex debate from scratch, causing further delays.
America cannot afford to postpone permitting reform.
The average infrastructure project takes roughly four or five years to obtain permits under the National Environmental Policy Act. Capital tied up in permitting is capital not being pumped into the economy. McKinsey & Company estimates that $1.5 trillion is currently stuck in the permitting pipeline, costing billions in lost revenue and gross domestic product growth.
Sidelined projects additionally translate to higher construction costs, which can increase 24 to 30% over project timelines. Overhead costs increase: Labor and material are subject to inflation. A $500 million road project, for example, could see $165 million in additional costs with a three-year permitting delay. Each year a project sits in review is a year in which its costs grow. These extra expenses tend to work their way down to consumers through higher prices.
The U.S. also faces significant energy challenges which will only be compounded by a broken and outdated permitting system. Electricity demand is surging, spurred by accelerated data center growth, reshoring of manufacturing, and a push to electrify homes and transportation.
According to the North American Electric Reliability Corporation’s 2025 assessment, summer peak electricity demand in North America will grow by more than 224 gigawatts in the next 10 years — 69% above levels projected a year ago. Some estimates assert the U.S. will need to build about 80 gigawatts of additional capacity per year for 20 years to keep up.
But that’s not the only dilemma. We also have an outdated electric grid.
Aging transmission lines are reaching the end of their life span. After two decades of stagnant electricity demand, the recent flood of electricity needs is adding stress to an already strained network. Utilities did little to build new infrastructure during those sleepy years, and some of our dependable generation capacity has undergone early retirement. The grid requires updates and expansion.
A broken permitting process has already contributed to increased electricity rates through canceled pipelines, delayed transmission lines, and stalled generation. Consumers need relief from high electric bills, not further hardship. Failure to fix the problematic system will only increase their costs.
OBAMA’S OWN ECONOMIST JUST EXPOSED THE MASSIVE COST OF GREEN ENERGY MANDATES
Permitting reform is an economic imperative. With billions in private investment stalled, electricity demand soaring, and infrastructure costs compounding every year projects sit in regulatory limbo, the status quo is actively undermining affordability and reliability for American families.
Lawmakers have a narrow window to act before political turnover resets the clock and delays stretch into years. The legislation already on the table offers a viable path forward, but only if Congress moves now. America cannot meet its infrastructure, energy, or economic needs without a modernized permitting system. The cost of inaction is simply too high.
Kristen Walker is senior policy analyst and manager for Energy and Transportation with the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, visit www.theamericanconsumer.org or follow us on X @ConsumerPal.