S 5039: License to Drill Act

S 5039 in plain English: This bill extends the Bureau of Land Management's authority to collect oil and gas drilling permit processing fees through FY2037, eleven years beyond the current FY2026 expiration. Fees collected are deposited into the BLM Permit Processing Improvement Fund.

Stated purpose

This bill extends the Bureau of Land Management's authority to collect fees from oil and gas drilling permit applications through the year 2037, and directs all collected fees into the BLM Permit Processing Improvement Fund.

Key points

• Extends BLM's oil and gas permit fee collection authority from FY2026 to FY2037.
• Fees from each new permit application go into the BLM Permit Processing Improvement Fund.

Arguments supporters make

• Extending the fee keeps the cost of processing drilling permits on the energy industry rather than on taxpayers, which is a fair user-pays approach.
• Maintaining a dedicated funding stream helps BLM process permits faster, which benefits companies seeking to drill and supports domestic energy production.
• The bill simply extends an existing, already-tested program rather than creating new rules or burdens, making it a straightforward, low-risk renewal.

Arguments opponents make

• Additional fees on permit applications could make drilling on federal lands more costly, potentially discouraging energy development and reducing domestic production.
• Critics may argue that if permit processing is slow, the solution should be reforming BLM's processes directly rather than extending a fee program indefinitely.
• Locking in this fee structure through 2037 removes Congress's near-term opportunity to revisit and adjust the policy as energy markets and federal land management needs change.

Tradeoffs

Extending the fee keeps permit processing funded without using general tax dollars, but it also continues a cost on energy companies that could affect the economics of drilling on federal lands. The longer authorization period provides budget stability for BLM while reducing how often Congress can reassess whether the program is working as intended.

Current status in Congress: In committee.

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