Supreme Court Ruling Reaffirms Power of Federal Regulators

Codes and Standards
Published

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.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Education

Jun 30, 2026

NAHB Welcomes First Cohort of New Master Credential Holders

As of June 25, 62 industry leaders hold the new title of Certified Master Builder or Remodeler, and the numbers continue to grow weekly.

Safety

Jun 29, 2026

Use NAHB Resources to Protect Workers from Heat and UV Exposure

As NAHB recognizes UV Safety Awareness Month in July, it is important for home builders and general contractors to educate workers about the potential risks associated with ultraviolet (UV) radiation and have plans and resources in place to keep them safe on the jobsite.

View all

Latest Economic News

Economics

Jun 30, 2026

Consumer Confidence Inched Up in June

Consumer confidence inched up in June due to improved views of business conditions and recent declines in oil prices easing inflation fears.

Economics

Jun 30, 2026

Construction Job Openings Increase

The number of open positions in the construction sector increased in May, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from three years ago due to declines in construction activity, particularly in housing.

Economics

Jun 26, 2026

Property Tax Revenue Leads State and Local Tax Growth in Q1 2026

Property tax revenue collected by state and local governments was higher in the first quarter of 2026 according to the Census Bureau’s quarterly summary of state and local tax revenue.