Executive Order Seeks to Eliminate Red Tape for Infrastructure Projects

Posted on August 23, 2017

In a press conference last Tuesday, President Donald Trump announced his latest executive order, which addressed infrastructure permitting. Though the event ultimately devolved into a controversial discussion about the tragic events in Charlottesville, the order offers some insight into the administration’s strategy on infrastructure policy.

The executive order, entitled “Establishing Discipline and Accountability in the Environmental Review and Permitting Process for Infrastructure,” is aimed at expediting permitting for infrastructure projects. It broadly tasks federal agencies with proposing ways to reduce average permitting time from the current average of seven years down to two years, and assigns an agency to each future project, placing them in charge of navigating the bureaucratic process.  To demonstrate its inherent complexity, Trump unveiled a six-foot long graphic depicting the permitting process at the press conference.

Trump has often spoken of a $1 trillion infrastructure plan, though none has materialized as of yet. His budget request proposed a mix of $200 billion in tax credits and direct funds, but it remains unclear whether this could spur enough private investment to reach $1 trillion. To complicate things further, the president recently announced that he would scrap plans to create an infrastructure advisory panel, which would have allowed the private sector to share input. 

Nevertheless, last week’s signing of the executive order is a clear indication that regulatory reform will play a major role in future infrastructure proposals. Modernizing the nation’s aging infrastructure remains one of NAIOP’s top priorities, and the association will continue to advocate for infrastructure policies that benefit the commercial real estate industry. 

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