U.S. Permitting Reform Essential for Competing with China
Former economic policy and national security officials are urging Congress to pass the Bipartisan American Affordability and Jobs Act of 2026 to accelerate the development of energy infrastructure in the United States. They argue that without this reform, the U.S. risks falling behind China in economic and industrial competitiveness. The bill, introduced in the Senate at the end of September, is expected to be debated after the mid-term elections when Congress reconvenes on November 9.
The proposed legislation aims to reinforce statutory deadlines for key reviews, overhaul environmental regulations, and require data centers to finance new transmission infrastructure. Supporters, including the American Petroleum Institute and major energy companies, argue that these reforms will provide greater investment certainty for essential energy projects.
Critics of the bill contend that it undermines environmental protections and facilitates a rapid expansion of fossil fuel infrastructure and hyperscale AI data centers. However, the former officials, who have served under six U.S. presidents, stress that delays in energy infrastructure projects could jeopardize national security and economic growth. They highlight that while the U.S. has significant advantages in technology and resources, these benefits are diminished if infrastructure projects take years to complete.
Urgency of Reform in Energy Infrastructure
The letter to Congress, signed by notable figures such as former Secretary of State Mike Pompeo and former Treasury Secretary Janet Yellen, underscores the urgency of permitting reform. They point out that China has made energy infrastructure a central component of its industrial strategy, having built more high-voltage transmission lines in the past 15 years than the U.S. has in its entire history.
Final Assessment
In 2024, China accounted for a larger share of global knowledge- and technology-intensive manufacturing compared to the U.S., according to data from the National Science Foundation. Pompeo emphasized that permitting reform is crucial for maintaining America's economic competitiveness and national security. The signatories, including economic advisers from previous administrations, believe that the bill is vital for addressing climate change and sustaining technological leadership.
API has called on lawmakers to prioritize this legislation upon their return in November, asserting that it presents a rare bipartisan opportunity to enact meaningful permitting reform. BP, a major player in the U.S. energy sector, has also expressed support for the bill, stating that comprehensive permitting reform is necessary to unlock America's energy potential and enhance domestic energy security.
