Supreme Court Ruling Reaffirms Power of Federal Regulators
The Supreme Court today narrowly decided to uphold, with significant limits, a doctrine that has plagued the regulated community for years. The case, Kisor v. Wilkie, addressed the issue of whether courts should defer to an agency’s interpretation of its own regulations, known also as Auer deference.
NAHB supported the petitioner with amicus briefs on behalf of an industry coalition organized by the association. NAHB has long been concerned with this type of judicial deference because it can create incentives for agencies to avoid formal rulemaking processes, or create vague regulations that they can interpret and re-interpret at a later date. Either tactic prevents the regulated community from participating in the development of the rules that govern their activities.
Auer deference has harmed NAHB’s interest in a number of cases, including a Clean Water Act case where the court relied on Auer to affirm the finding of a violation against property owners who had constructed a ditch to build a residential subdivision.
In a fractured opinion written by Justice Elena Kagan, the Supreme Court declined to overrule its precedent establishing this deference doctrine, and instead identified a series of factors that courts should use when determining whether Auer deference is appropriate. The court stressed that, under this new formulation, the situations where Auer will be applied will be far fewer than is currently the case.
It remains to be seen whether the limitations recommended by the court will address the many problems that NAHB and others in the regulated community have raised.NAHB will vigilantly monitor the application of this re-imagined Auer deference in the lower courts, and engage in opportunities to ensure that the newly-outlined limitations are broadly applied.
Latest from NAHBNow
Nov 12, 2025
NAHB Urges House to Pass Senate Bill Reopening the GovernmentNAHB Chairman Buddy Hughes issued the following statement after the Senate approved legislation that would fund the government and the National Flood Insurance Program through Jan. 30, 2026.
Nov 11, 2025
Trade Data: State-Level Analysis of Canadian Softwood LumberIn 2024, Canadian softwood lumber exports to the U.S. totaled $5.1 billion, accounting for approximately 74% of the total value of softwood lumber imports. But where in the U.S. are these imports headed?
Latest Economic News
Nov 12, 2025
Adjustable-Rate Mortgage Applications RiseAll types of mortgage activity rose on a year-over-year basis in October, supported by recent declines in interest rates. Notably, adjustable-rate mortgage (ARM) applications more than doubled from a year ago, and refinancing activity continued to strengthen.
Nov 12, 2025
Employment Loss and Post-COVID Recovery Across U.S. Metro AreasIn April 2020, total payroll employment in the United States fell by an unprecedented 20.5 million, following a loss of 1.4 million in March, as the COVID-19 pandemic brought the economy to a sudden halt. The unemployment rate surged by 10.4 percentage points to 14.8% in April. It was the highest rate effectively since the Great Depression.
Nov 11, 2025
Credit Card and Auto Loan Balances Continue to SlowOverall consumer credit continued to rise for the third quarter of 2025, but the pace of growth remains slow. Student loan balances continue to rise as well, slowly returning to pre-COVID growth.