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
Feb 18, 2026
Colorado Builder and Remodeler Elected First Vice Chairman of NAHBBob Peterson, a Fort Collins, Colo.-based home builder and remodeler with more than 40 years of experience in the construction field, today was elected 2026 first vice chairman of the National Association of Home Builders (NAHB) during the association’s International Builders’ Show in Orlando.
Feb 18, 2026
Ohio Builder Elected Chairman of NAHBBill Owens, a Worthington, Ohio-based, remodeler and home builder with more than 40 years of experience in the residential construction industry, today was elected as the 2026 chairman of the National Association of Home Builders (NAHB) during the association’s International Builders’ Show in Orlando, Fla.
Latest Economic News
Feb 17, 2026
Builder Sentiment Edges Lower on Affordability ConcernsBuilder confidence in the market for newly built single-family homes fell one point to 36 in February, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).
Feb 17, 2026
How Rising Costs Affect Home AffordabilityHousing affordability remains a critical issue, with 65% of U.S. households unable to afford a median-priced new home in 2026. When mortgage rates are elevated, even a small increase in home prices can have a big impact on housing affordability.
Feb 16, 2026
Cost of Credit for Builders & Developers at Its Lowest Since 2022The cost of credit for residential construction and development declined in the fourth quarter of 2025, according to NAHB’s quarterly survey on Land Acquisition, Development & Construction (AD&C) Financing.