In a promise made by President-elect Trump, any individual or company investing at least $1 billion in the United States will receive “accelerated comprehensive approvals and permits” to facilitate the investment process. This move signals Trump’s intention to relax regulations and attract more foreign investment during his second term in office. Analysts suggest that this policy aims to attract increased investments to boost the U.S. economy, particularly in the energy and infrastructure sectors.
On Tuesday, Trump posted on the social media platform Truth Social, stating that individuals or companies investing $1 billion or more in the U.S. will receive accelerated approvals and permits, including approval in all environmental aspects. The specifics of Trump’s proposal remain unclear, and such measures may face opposition from state and local governments.
Nevertheless, Trump’s plan aligns with his campaign promise to bolster energy, infrastructure, and other domestic investments during his second term and to remove federal regulations hindering economic growth, according to the Republican Party.
Trump has nominated North Dakota Governor Doug Burgum to lead the Department of the Interior and the newly formed National Energy Commission, and appointed oil and gas company CEO Chris Wright to lead the Department of Energy. Lee Zeldin has been selected by Trump to lead the Environmental Protection Agency, with promises to reduce regulations deemed burdensome to businesses.
The National Environmental Policy Act (NEPA), passed in 1970, is one of America’s foundational environmental laws, requiring federal agencies to conduct environmental reviews before approving energy production, pipelines, highways, and other infrastructure projects. However, some companies and lobbying groups argue that these environmental reviews are lengthy, leading to project delays and increased costs.
Permit reforms are a major demand of the oil and gas industry. Legal and regulatory delays have hindered the construction of new pipelines for years and suppressed natural gas production in the Appalachian region.
Currently, energy is also a key concern for tech companies, as the growth of AI services is expected to rapidly increase U.S. electricity demand in the coming years, necessitating significant investments in power infrastructure.
However, it remains uncertain how Trump intends to expedite approvals, as he is unlikely to implement sweeping changes to the federal permitting system through executive authority. The long-standing NEPA has set the standard for government reviews, which only Congress can overturn.
Previous attempts by Trump during his first term to alter the federal permitting system, as well as other measures during the Biden administration, were thwarted without congressional support.
While both parties agree that current rules impede various energy developments, there is no consensus on how to amend the regulations.
Georgetown University law professor William Buzbee told the Congressional Hill that Trump could request agencies to “act swiftly on particular high-priority items.” However, he noted that these requests “at most are cues for priority actions, with agencies still required to adhere to NEPA’s provisions and procedures.”
Buzbee highlighted that NEPA does not provide a statutory fast-track approval process for major investment projects.