NEW YORK, Dec. 11, 2025 (GLOBE NEWSWIRE) — A new report from Labrynth, an AI native regulatory intelligence company dedicated to streamlining permitting approvals across government and industry, reveals the high cost of permitting delays in America: nearly $60 billion in economic development is stalled annually due to red tape in local approval processes. A growing number of midsize cities like Edinburg, Texas, across America are proving that reform is both possible and powerful by reclaiming time, cutting costs, and unlocking growth by rethinking the permitting status quo.
The Red Tape Report, based on the national Red Tape Index (RTI) database, finds that just 25% of cities improving their permit performance by 50% — as Edinburg, TX has done — could unlock more than $59 billion in stalled construction, housing, and infrastructure projects annually.
Estimated Annual Impact of Permitting Inefficiency
“With an average project value of $158,000, each delayed permit is more than just a bureaucratic hurdle, it’s a stalled home, business, or energy facility,” said Stuart Lacey, Founder and CEO of Labrynth and Director at Red Tape Index, “Multiply that across 1.5 million permits a year, and we’re talking about more than $59 billion trapped in approval limbo due to process inefficiencies.”
The town of Edinburg, a community long burdened by backlogged reviews and opaque permit queues, has become a standout example of what’s possible when municipalities commit to process clarity, digital modernization, and customer-first service. Their achievements are a gold-standard benchmark for other towns navigating similar permitting and licensing bottlenecks:
- Cut approval timelines by 50% (from 60–90 days to 30–45) over the past two years
- Enabled $300M in construction activity across just 1,900 permits annually, averaging ~$158,000 per permit
- Ranked #13 out of 500+ cities for permitting speed
Edinburg isn’t alone, in cities like Lakeville, Minnesota and Fort Worth, Texas, local leaders are independently driving innovation by reimagining intake, retraining staff, and reducing backlogs. The progress in these towns signals a broader municipal shift: from compliance-as-burden to permitting-as-growth-driver.
“Our mission is to make red tape a competitive advantage,” said Lacey. “Cities shouldn’t fear complexity, they should master it.”
The Red Tape Index (RTI) is the most comprehensive permitting performance database in the U.S., tracking more than 500 cities and all 50 states. It combines public records, regulatory data, and AI-powered analysis to measure permitting speed, transparency, and scalability. The full Red Tape Report, including additional city-level case studies and regulatory readiness benchmarks, is available at https://redtapeindex.com/report.
About Labrynth
Labrynth is the first transparent AI company purpose-built to solve regulatory bottlenecks at scale. Its outcome-based models compress permitting timelines, reduce compliance risks and unlock faster revenue for industries and local governments. Spun out from AI and agentic innovation powerhouse Invisible Technologies and backed by AI HoldCo platform Infinity Constellation, Labrynth blends cutting-edge AI with human expertise to build a smarter, faster, and fairer regulatory system. Learn more at www.labrynth.ai.
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