Americans are exhausted by the cost of living—and energy sits at the heart of it. Recently published research by Kevin Dayaratna and Kat Miller at Advancing American Freedom (AAF) analyzing worldwide data finds that robust energy production is directly tied to higher incomes, greater productivity, longer life expectancy, and lower child mortality. The reality is stark: no country has ever achieved high living standards without substantial energy use.
Yet America’s regulatory regime makes energy harder, not easier, to produce—and families pay the price. Last year, federal regulation cost the U.S. economy an estimated $2 trillion—approximately $25,000 for a family of four.
Indeed, onerous regulations on things as simple as food ingredients and food packaging have pushed grocery prices higher, and that regulations on health insurance plans have fueled the rise in health care costs. When the government inserts itself into every corner of American life, the cost to ordinary Americans is real and impacts their pocketbooks.
It comes as no surprise that cost of living is the number one problem facing American families. Voters know what they’re experiencing and it’s real. Now, elected officials must respond accordingly.
Upon retaking office, the Trump Administration launched a 10-to-1 deregulation initiative and during its first year slashed Federal Register output (the official publication of new federal regulations) to its lowest level in over 30 years, reducing the regulatory burden on American families. But Congress must do its part as well.
Congress should pursue aggressive and commonsense permitting reform to drive down regulatory costs and relieve hardworking American families from the suffocating burden of government regulations. If regulatory burdens are driving the financial pressure Americans face, then robust policy that cuts red tape and streamlines permitting is a direct step toward relief. A broken permitting system is a not-so-hidden tax that every American pays every single day, buried in clear sight on their energy bills, their internet costs, and the price of American-made goods.
As AAF’s research makes clear, energy abundance is the engine of the prosperity Americans want. America’s regulatory regime should reflect that simple truth and make it easier, not harder, to get electric capacity operational.
>>>READ: How the SPEED Act Seizes the Moment on Permitting Reform
With the explosive growth of AI and emerging technologies, energy demand is sharply rising, and America needs to meet the moment with more domestic energy production. Yet the average permitting timelines for major energy projects stretch between four and seven years, with costs climbing every year due to inflation and unnecessary red tape. These permitting handcuffs risk forfeiting America’s AI and tech advantage to China. Every year of delay is another year that new capacity sits offline; energy prices stay elevated, and America loses ground in the battle for AI supremacy. Streamlining that process would lower building costs and expand American energy capacity when the country needs it most.
The same story plays out across the broader economy. Regulatory compliance costs small manufacturers approximately $29,000 per employee per year and industrial projects take roughly 80 percent longer to permit in the United States than in other countries. Meanwhile, broadband and wireless projects are stalled by duplicative permits, unpredictable timelines, and excessive fees, leaving rural communities without the internet access that the 21st century economy—from education to healthcare to economic opportunity—increasingly requires. Regulatory bottleneck isn’t protecting Americans; it is burdening them.
This is precisely the pattern AAF’s report identifies: regulation sold as “protection” is, in practice, an unnecessary cost driver, passed quietly from government to business to the average consumer.
Permitting reform is the clear, actionable response to overregulation. After years of partisan stalemate, permitting reform has emerged as a genuine bipartisan opportunity. New polling shows that voters across the political spectrum support permitting reform and Congress has recently taken notice.
>>>READ: How to Build Breakthroughs in America Without Subsidies
The House passed the SPEED Act and the PERMIT Act in December, and Senate negotiations are ongoing. But with the midterms approaching and electoral uncertainty waiting in the wings, Congress must act now to free the American people from a suffocating regulatory regime.
Republicans have an obligation to make good on their promise to make America more affordable. Overregulation is not an abstract policy problem; it is the reason families are paying more for groceries, healthcare, and energy. Permitting reform is action that can solve this lingering issue. Americans sent their representatives to Washington to lower bills, make groceries more affordable, and spur job growth. Cutting the red tape that drives up their costs is the most direct answer Congress has.
The moment is here, and it will not wait.
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.
