NAHB Achieves Major Policy Victories in 2025

NAHB represents members’ interests in the U.S. Congress, in the courts, and in several federal agencies that impact the residential construction industry.

The association also works closely with its state and local home builder chapters, defending the housing industry in statehouses, county courthouses, and city halls where its members engage with government officials.

Without a doubt, 2025 was a banner year for housing advocacy efforts, resulting in measurable and lasting changes that address housing supply and affordability. 

One Big Beautiful Year

By the far the most notable advocacy issue in 2025 was the passage of The One Big Beautiful Bill Act (OBBBA), which extended many elements in the 2017 Tax Cuts and Jobs Act scheduled to expire at the end of last year. 

Through its efforts on Capitol Hill, NAHB secured key wins regarding state and local tax deductions for individuals and pass-through businesses. Key provisions of the 2017 Tax Cuts and Jobs Act were made permanent, including the tax rate structure and increased exemptions for the Alternative Minimum Tax. The measure also increased the estate tax exemption to $15 million (and made it permanent) and expanded the Low-Income Housing Tax Credit.

Environmental Policy Gains

Looking at environmental regulations, the U.S. Supreme Court ruled that the U.S. Environmental Protection Agency (EPA) could not include “end result” requirements in Clean Water Act (CWA) permits, a decision aided by NAHB’s amicus brief offering expertise, information, or a broader perspective to help the court make an informed decision. The court chose not to alter the “best management practice” approach to CWA permitting, which is crucial for home builders. 

In a separate case before the Supreme Court, NAHB argued that environmental impact analyses are improper when they stray outside of an agency’s regulatory control. The court handed down a unanimous decision that narrowed the scope of environmental reviews for infrastructure and other building projects, thereby reducing litigation risk and endless project delays.

NAHB also pushed for sensible energy codes and building codes that yield safe, resilient, and energy efficient homes without adding unnecessary costs. NAHB staff and members serving on the 2027 International Energy Conservation Code (IECC) consensus committee successfully defended gains in flexibility and cost effectiveness achieved during the previous energy code cycle. 

For example, NAHB was instrumental in preserving reasonable insulation, building tightness requirements, and fuel choices in multifamily buildings regulated by ASHRAE 90.1.

Regulatory Reform

Overall, federal regulations that affect new residential construction remained a burden. President Trump issued an executive order on his first day in office seeking to lower the cost and increase the supply of housing. Citing NAHB data, the president noted that regulatory requirements alone account for 25% of the cost to build a new home.

In support of the Trump Administration’s deregulatory efforts, NAHB submitted a comprehensive framework of deregulatory recommendations to the Office of Management and Budget (OMB) that covers several federal agencies that encompass a host of regulations affecting the residential construction industry. 

The submission was made pursuant to an official OMB Request for Information that asked the private sector to help identify regulations that are unnecessary, unlawful, unduly burdensome, or unsound.

State and Local Wins

At the state and local level, NAHB provided $360,000 in financial assistance to 18 partner home builder associations (HBAs) to help them advocate on industry issues.

Similarly, the Legal Action Fund granted $330,000 to help 13 state and local associations and three members involved in litigation. NAHB supplemented this funding with technical assistance and staff expertise to help HBAs and members achieve their goals.

Examples of state and local advocacy victories can be found from coast to coast. In a major victory in the long legal battle over New York’s statewide gas ban for new homes, NAHB and the New York State Builders Association have secured a suspension of the new regulations while the case works through the appeals process. 

And in California, Gov. Gavin Newsom signed into law a budget bill for the state with many pro-housing provisions, including a six-year pause on adopting or amending new home building codes.

To learn more, visit nahb.org/advocacy/advocacy-overview.