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 14, 2025
Last Chance to Apply for 2026 Best of IBS AwardsExhibitors at the NAHB International Builders’ Show® (IBS) have an opportunity to spotlight their innovative new products each year through the Best of IBS Awards. Don't miss your chance - apply by Friday, Nov. 21.
Nov 14, 2025
Watch Livestreams of Key Fall Leadership MeetingsNAHB leadership, including committee and council members, will gather Nov. 17-19 for the 2025 Fall Leadership Meeting in Denver.
Latest Economic News
Nov 13, 2025
Unchanged Lending Conditions for Residential Mortgages in Third QuarterLending standards for most types of residential mortgages were essentially unchanged, according to the recent release of the Senior Loan Officer Opinion Survey (SLOOS). For commercial real estate (CRE) loans, lending standards for construction & development were modestly tighter, while multifamily was essentially unchanged. Demand for both CRE categories was essentially unchanged for the quarter.
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.