A Step Forward for Proposed WOTUS Rule
The Federal Register today published a proposed new rule for "waters of the United States" (WOTUS) that will resolve years of uncertainty over where federal jurisdiction begins and ends. The Environmental Protection Agency and U.S. Army Corps of Engineers will take comments on the proposal for the next 60 days.
The proposed rule, which represents an important victory for our members, was released by the Trump administration on Dec. 11. As a result of the government shutdown that occurred 10 days later, the Federal Register delayed publication of the proposal until today. The revised rule would address many of the serious concerns that NAHB had over the Obama-era regulation that went so far as to regulate man-made ditches and isolated ponds on private property.
The proposal would exclude short-lived ponds, streams and tributaries that only flow in response to a rain event from federal regulation. It would also exclude wetlands that are not directly connected to federally-regulated bodies of water. This new rule will help landowners to determine whether a project on their property will require a federal permit or not, without spending tens of thousands of dollars on engineering and legal professionals.
This revised rule will protect our nation’s waterways and save home builders and other industries that rely on a predictable permitting process time and money. Meanwhile, EPA has announced it will hold a hearing on the proposed new WOTUS rule on Feb. 27 and 28 in Kansas City. The hearing was originally planned for Jan. 23 but was postponed due to the partial government shutdown.
NAHB will be providing comments on the proposed rule and home builder associations and individual members are encouraged to submit comments during the 60-day period that ends April 15. NAHB will be posting template comment letters for members to use at nahb.org/wotus.
The new rule is expected to be finalized and instituted in all 50 states before the end of 2019. In the meantime, because of multiple legal challenges, the Obama-era WOTUS rule remains in effect in 22 states and the District of Columbia, and the previous regulations issued in 1986 are in effect in the remaining 28 states.
Latest from NAHBNow
Apr 10, 2026
Home Remodeling Profit Margin Jumps on Demand and Business PracticesProfitability for residential remodelers reached its highest level in nearly 30 years in 2024, according to NAHB’s most recent Remodelers’ Cost of Doing Business Study.
Latest Economic News
Apr 09, 2026
Remodeling Market Sentiment Edges Down but Remains Positive in First QuarterIn the first quarter of 2026, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 62, down two points compared to the previous quarter. Despite this decline, the overall reading has been solidly in positive territory since Q1 2020.
Apr 08, 2026
Remodelers Saw Profit Margin Gains in 2024Profitability for residential remodelers reached its highest level in more than two decades in 2024. Industry-wide profit benchmarks are important because they allow companies to evaluate their financial performance in context with the industry.
Apr 07, 2026
Rising Rates Weigh on Mortgage ActivityMortgage application activity decreased month-over-month as the 30-year fixed mortgage rate rose. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, declined 4.3% from February on a seasonally adjusted basis but remained 30.8% higher than a year earlier.