Permitting Reform

America wants more domestic production - but a broken federal permitting system leaves manufacturers waiting years to build. The NAM's report America on Hold quantifies the cost and charts the fix.

It takes too long to build in America.

America wants more domestic production — but a broken federal permitting system treats routine industrial upgrades like brand-new developments and leaves manufacturers unable to forecast if or when approval will come. The result is years of delay and billions in lost investment.

Permitting costs manufacturers about $12 billion a year.

America on Hold, published by the NAM and the Foundation for American Innovation, found that getting and keeping federal permits costs manufacturers $79.5 billion over 10 years, or $7.9 billion a year. That is only part of the cost.

Manufacturers also spend months or years waiting for permits past the deadlines in current law, and they pay for interconnection delays, grid congestion and pipeline constraints on their power bills. Those costs, measured separately, add another $4.1 billion a year, bringing the total to roughly $12 billion a year. Across every sector of the economy, federal permitting costs about $50 billion a year.

Where the cost falls

The map shows where federal permitting costs land, state by state, both in total and on average per manufacturing establishment, and how much of it the Bipartisan American Affordability and Jobs Act (BAAJA), the Senate’s permitting reform bill, would save manufacturers. Hover or tap a state for its figures.

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The Case for Permitting Reform

Where the burden falls

The permits manufacturers hit most

For manufacturers, permitting pain isn’t one law — it’s the sum of air, water and environmental reviews they face year after year.

Clean Air Act

73%

of equipment additions require an air permit — ranked the #1 most burdensome by half of all respondents, with approvals often topping 10 months.

Clean Water Act

82%

of facility expansions trigger CWA permits (NPDES, §404, §401). Scope creep and unclear timelines are the primary friction points.

NEPA / ESA / NHPA

4.1 yrs

average environmental-impact-statement completion time for manufacturing projects — nearly double the national average — compounding every other delay.

A practical reform agenda

Eight priorities for Congress and the administration

1

Make routine changes routine

Minor upgrades should face proportional review — not novel-project scrutiny.

2

Make renewals boring

Unchanged operations should trigger verification, not full re-permitting.

3

Make timelines predictable

Statutory deadlines once an application is complete — no open-ended queues.

4

Reform NEPA

Expand categorical exclusions, narrow scope and expedite judicial review.

5

Modernize the Clean Air Act

Workable PM2.5/ozone standards, realistic review cycles and regional credit trading.

6

Streamline the Clean Water Act

Clarify §401/§404 timelines and scope, and expand the use of general permits.

7

Raise the bar for injunctions

Procedural litigation should halt operations only when irreparable harm is imminent.

8

Create durable certainty

Legally permitted projects must stay permitted — limit revocation risk and enforce deadlines.

“Permitting reform is not a single-law issue. For manufacturers, the daily burden is overwhelmingly about air and water permits — and the pain comes from the sum of reviews they face each year.” — Key finding, America on Hold (NAM & Foundation for American Innovation, 2026)

On the record

Manufacturers make the case

Manufacturing leaders describe what a modernized permitting system would mean for jobs, supply chains and American energy.

“Projects that strengthen our energy system can face years of unnecessary delays under the current NEPA framework. Uncertain timelines, duplicative reviews, overly expansive analyses, and lengthy litigation can stall or even cancel critical infrastructure. Modernizing NEPA is a critical step toward providing greater certainty for developers and communities so we can deliver the energy needed to support American jobs, strengthen supply chains, and keep energy affordable for families and businesses.”

— Toby Z. Rice, President & CEO, EQT

“We were the first mining project covered under the federal government’s FAST-41 permitting program in 2024. From start to finish, the process will take just over two years. We have seen the benefits that streamlining and coordinating federal efforts under NEPA provides to projects like Hermosa. When there is a collective will to support a project needed for national security, the resources are put in place to ensure the defined timeline milestones are met with the same, if not more, amount of rigor and efficiency. By responsibly modernizing NEPA in a bipartisan manner, more critical projects can move forward to support communities, provide jobs, and deliver for America.”

— Pat Risner, President, Hermosa Project, South32

In action

Driving permitting reform forward

Manufacturers are leading the push for a modern permitting system — and with a bipartisan Senate bill on the table, reform is closer than ever.

  • July 2025
    Reps. Bruce Westerman (R-AR) and Jared Golden (D-ME) introduce the bipartisan SPEED Act, reflecting the NAM’s NEPA-reform priorities. Read the story
  • December 2025
    The House passes the SPEED Act 221–196, along with four more NAM-backed permitting and grid bills — including the PERMIT Act, which would modernize the Clean Water Act. Read the story
  • March 2026
    Senate negotiators reopen permitting talks, and the NAM and the Foundation for American Innovation release America on Hold, which finds America’s broken permitting system costs manufacturers $7.9 billion a year. Read the story
  • April 2026
    The House passes three NAM-backed Clean Air Act reform bills — the FIRE, RED Tape and FENCES Acts. Read the story
  • May 2026
    The EPA proposes letting manufacturers build non-emitting parts of projects while air permits are pending and issues guidance to speed Clean Air Act permit reviews, and FERC proposes to streamline permitting for natural gas projects. Read the story
  • July 2026
    A federal appeals court sides with the NAM and the EPA, unanimously upholding the Project Emissions Accounting rule and giving manufacturers certainty on a streamlined approach to New Source Review air permitting. Read the story
  • September 2026
    Answering manufacturers’ call, Sens. Shelley Moore Capito (R-WV), Sheldon Whitehouse (D-RI), Mike Lee (R-UT) and Martin Heinrich (D-NM) introduce the Bipartisan American Affordability and Jobs Act (S. 5653) — a permitting deal reflecting key NAM priorities, from NEPA reform to faster, more predictable reviews. Read the story
  • October 2026
    The NAM leads more than 100 manufacturing and business groups in urging the Senate to pass the bill, expands its national ad campaign and takes the push to a New Mexico factory floor with Sen. Heinrich. Read the story
  • November 2026
    On Nov. 2, NAM President and CEO Jay Timmons and Sen. Whitehouse convene a roundtable at manufacturer Cooley Group in Pawtucket, Rhode Island, bringing together manufacturing, labor and business leaders to build support for the bill. Seven labor unions now back it, and as lawmakers return after the election, the NAM is pressing Congress to get the bipartisan agreement across the finish line. Read the story

Clear the way to build

Faster, more predictable permitting means more investment, more jobs and a stronger industrial base. Read the report and add your voice.