Coalition Challenges Biden Housing Rule Increasing Construction Costs
Summary
A coalition of 15 states and the National Association of Home Builders successfully challenged a Biden Administration housing rule that would have increased construction costs. A federal court vacated the rule, agreeing it would negatively affect housing affordability and availability.
What changed
A federal court in Texas has vacated a Biden Administration rule that mandated radical energy codes for new home construction, which was projected to increase costs by up to $8,345 per home, with industry estimates suggesting much higher figures. The court agreed with the coalition of 15 states and the National Association of Home Builders that the rule violated federal law by negatively affecting the availability and affordability of new housing.
This ruling removes a significant cost burden on home builders and potentially on consumers, ensuring that the rule does not go into effect. Regulated entities, particularly those in the construction and home building sectors, should note that this rule has been successfully challenged and will not impose new obligations related to energy codes as previously proposed. No further action is required as the rule has been vacated.
Source document (simplified)
Posted Monday, March 9, 2026 Attorney General Hilgers announced today that a federal court in Texas has vacated a rule implemented by the Biden Administration that would have imposed spiked housing costs by imposing radical energy codes on home construction. The Biden Administration conceded that its standards would have cost up to $8,345 for each new home covered by the regulation. But estimates by industry professionals showed the actual costs as far higher—up to $31,000 for each new home.
“This victory will ensure that unelected bureaucrats can’t push the dream of owning a home further out of reach for Nebraskans,” said Attorney General Hilgers. “The Biden Administration’s lawless rule would have increased costs and decreased housing production during an affordability crisis in the housing market. Thankfully, that’s not going to happen because of this ruling.”
The federal court in Texas agreed with the States’ argument that the Biden Administration’s rule would have decreased the availability of affordable housing, all in contradiction of federal law. Federal law requires any codes adopted to “not negatively affect the availability or affordability of new construction of housing.”
Nebraska joined 14 other States in challenging the Biden Administration’s rule: Utah, Texas, Alabama, Arkansas, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, South Carolina, Tennessee, and West Virginia. The National Association of Home Builders also joined the 15-State coalition.
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