US Faces Trillions in Economic Losses Due to Permit Delays, Sparking Calls for Executive Action

Blake Scholl, CEO of Boom Supersonic, has ignited a debate on streamlining development in the United States, suggesting that President Biden should issue an executive order to auto-approve pending permits. Scholl, a prominent tech entrepreneur and aviation innovator, argued on social media, "Unpopular opinion: you shouldn’t need pre-approval of a bureaucracy to build in America." He added, "POTUS should sign an executive order auto-approving every pending permit, reserving the right to bring enforcement later if someone breaks the rules."

The call for drastic action comes amidst growing concerns over the economic toll of protracted permitting processes. A McKinsey & Company analysis estimates that $1.1 trillion to $1.5 trillion in infrastructure capital expenditure is currently tied up in federal permitting, with each dollar taking an average of four to five years to move through the system. These delays result in an estimated $100 billion to $140 billion in unrealized returns annually and contribute to an unrealized cumulative GDP of $1.7 trillion to $2.4 trillion.

While permitting aims to safeguard communities and the environment, its inefficiencies have significant consequences. Delays not only increase construction costs by 24 to 30 percent but also hinder the availability of housing and commercial spaces, driving up prices. The construction industry, a major employer, sees fewer projects and job opportunities due to these bottlenecks, impacting local economies.

Previous administrations have attempted to address these issues. The Fiscal Responsibility Act (FRA) of 2023 and the Fixing America’s Surface Transportation Act (FAST-41) of 2015 introduced measures to reduce timeline durations and expedite environmental reviews. For instance, the median duration of Environmental Impact Statement (EIS) reviews has decreased, with the percentage of EIS reviews taking over two years dropping from 71% pre-FRA to 61% post-FRA.

Scholl's company, Boom Supersonic, recently achieved a significant milestone with its XB-1 demonstrator aircraft breaking the sound barrier three times in early 2025, marking the first privately funded aircraft to do so. His background in tackling complex engineering challenges and his company's experience with regulatory hurdles in aviation likely inform his strong stance on bureaucratic efficiency. The debate highlights the tension between regulatory oversight and the urgent need for economic growth and infrastructure development in the U.S.