Federal Permitting Law (NEPA) Is Strangling American Manufacturing and Congress Must Reform It
Source: "US manufacturing decline tied to federal permitting and horrible delays | Fox News." September 24, 2026. www.foxnews.com
The Gist
The authors argue that America's declining share of global manufacturing isn't due to lack of skill or money, but because a federal environmental review law (NEPA) has become so bloated with delays, lawsuits, and costs that it's nearly impossible to build new factories. They say Congress needs to step in and fix this law so American businesses—especially small manufacturers and startups—can actually build things again.
Conclusion
Congress must enact durable statutory reforms to NEPA and federal permitting law to restore America's ability to build manufacturing facilities domestically.
Premises
- America's share of global manufacturing output has fallen from 25% in 1997 to 15% today, with a projected drop to 11% by 2030 absent intervention.
- This decline stems not from lack of talent, capital, or technology, but from an inability to build anything due to federal permitting barriers.
- NEPA, originally a procedural 'look before you leap' statute, has been transformed through regulatory layering and aggressive litigation into a roadblock for virtually any project with federal connection.
- NEPA reviews take excessive time: median reviews run 26 months, environmental impact statements average 3.8 years, and even 'fast track' environmental assessments average a year or more—none of which are legally required timelines.
- The financial costs are substantial: environmental assessments average over $300,000 and environmental impact statements average $6.6 million, excluding legal fees and litigation costs.
- These delays and costs are often company-ending for small businesses and startups (e.g., drone manufacturers, battery startups, defense tech companies), even though these are exactly the companies and jobs America needs.
- Regulatory uncertainty from this process prevents investors from confidently deploying capital into domestic manufacturing projects.
- Only Congress, not the Supreme Court or executive action alone, can enact the durable statutory reforms needed to fix this systemic problem.
Assumptions
- Reducing permitting timelines and costs would not significantly compromise environmental protection or oversight.
- The decline in manufacturing share is primarily attributable to permitting delays rather than other factors like labor costs, globalization, automation, or trade policy.
- Faster permitting will translate into actual increases in domestic manufacturing investment and output.
- Enforcing deadlines and limiting litigation will not simply shift problems elsewhere (e.g., rushed environmental reviews leading to worse outcomes).
- Categorical exclusions and streamlined processes can be applied broadly without undermining case-by-case environmental scrutiny where genuinely needed.