The Senate Has a Chance to Reignite Permitting Reform Before August Recess

Reports last week that Senate negotiators are continuing work on a bipartisan permitting package are welcome news. The window is narrowing but remains open. Before lawmakers leave Washington for the August recess, the Senate has an opportunity to advance legislation that makes federal permitting more transparent, efficient and durable.

The stakes reach far beyond Capitol Hill. This is about whether the United States can build the infrastructure required to compete and win. Businesses are ready to invest in energy, water, transportation, critical minerals, broadband and advanced manufacturing. Workers and communities are ready for the jobs and growth these projects can bring.

Too often, projects America needs are delayed not by a lack of capital, demand or ambition, but by a federal permitting system that takes too long to deliver a clear yes or no. Equally damaging is a process in which an approval can later be reversed without a clear and consistent basis. When approvals stretch for years – or when valid permits are thrown into doubt – costs rise, uncertainty compounds and every dollar becomes harder to put to work.

More than 650 major infrastructure projects are awaiting federal approvals before construction can begin. The word “major” matters. These are very large, capital-intensive projects that connect power to the grid, move goods through ports, strengthen supply chains, expand broadband, produce and transport energy, and support AI and manufacturing. Each represents years of planning, significant investment, skilled trades jobs and long-term economic benefits.

Yet that figure substantially understates the challenge. It leaves out thousands of smaller projects caught in the same permitting backlog, including substation upgrades, wastewater improvements and other local infrastructure updates. Individually, these projects may be smaller. Collectively, they shape whether communities can provide essential services, attract investment and grow.

The scale of the opportunity is enormous. McKinsey estimates that $240 billion to $280 billion in infrastructure capital expenditures enter federal permitting each year, and that the average dollar takes four to five years to move through the system. That means $1.1 trillion to $1.5 trillion in infrastructure investment is currently tied up in federal permitting. The same report finds that faster permitting could unlock $1.7 trillion to $2.4 trillion in unrealized cumulative GDP and power the equivalent of 38 million to 54 million homes.

A faster permitting system can still be a rigorous one. Sound environmental standards, community input and responsible development are vital. The goal is transparent and predictable review that protects communities and natural resources while giving project sponsors a timely decision.

Congress can make the biggest difference through four practical reforms.

First, eliminate redundancy and inefficiency. Too many projects face overlapping reviews across agencies and jurisdictions. Federal reviews need focus, coordination and a clear division of responsibility. Agencies can also make greater use of proven tools – including categorical exclusions, nationwide permits, programmatic reviews and permits by rule – to reduce unnecessary duplication and make reviews more efficient.

Second, establish reasonable timelines. It should not take longer to permit a project than it takes to build it. Federal law should require timely decisions and clear accountability after environmental reviews are complete.

Third, reform litigation. Access to courts should be preserved, but endless lawsuits cannot remain the default. Federal agencies prevail in about 80% of NEPA-related appeals. Yet challenges that reach circuit courts can take an additional four years to resolve.

Fourth, create certainty and predictability. Certainty is the key to unlocking investment in America’s infrastructure. Once a project has received final approvals, those decisions need to be durable and not subject to arbitrary reversal.

The country has no shortage of ambition. America wants energy security, AI leadership, stronger supply chains, modern transportation, expanded broadband and a competitive manufacturing base. But none of that happens if America cannot build – and build faster.

Congress and the Administration have made important improvements to federal permitting. But executive action, agency guidance and targeted legislative fixes do not provide the durable, systemwide reforms companies need when making investments measured in decades. Businesses, workers and communities need a permitting system that is predictable enough to support long-term investment and rigorous enough to earn public trust.

The Senate has an opportunity to move the debate forward by advancing a bipartisan package before the summer recess. That would send a clear signal that Washington is serious about delivering the infrastructure America needs to compete, grow and lead.

Matt Sonnesyn is Senior Vice President for Policy at Business Roundtable – an association of more than 200 CEOs of America’s leading companies.