Federal Regulations Cited as Major Obstacle to U.S. Infrastructure Growth

Some reports state that federal regulations cost the U.S. economy more than $2 trillion per year, citing bureaucracy as a major obstacle to infrastructure growth. Separately, a paper from the University of Maryland estimates America's infrastructure shortfall at $3.7 trillion over the next decade, arguing the issue is structural design rather than funding. Additionally, pipeline shortages and outdated federal permitting are cited as preventing American energy from reaching consumers efficiently.

The permitting process is currently holding an estimated $1.5 trillion in projects. One analysis suggests that the lack of institutional architecture is preventing local governments from accessing large amounts of pension fund and insurance sector capital needed for local infrastructure. Addressing these bottlenecks is seen as necessary to lower costs and strengthen energy security.