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

Leading Suppliers Council

Aug 04, 2026

How AI Is Changing the Way Builders Source and Validate Land

AI can strengthen site selection in two key ways: surfacing parcels competitors would otherwise never see, and validating them fast enough to act.

Safety

Aug 03, 2026

Strengthen Your Safety Plan During OSHA's Safe + Sound Week

Join NAHB and OSHA in celebrating this year’s Safe + Sound Week, Aug. 10-16, to recognize the successes of workplace health and safety programs and share information and ideas on how to keep workers safe.

View all

Latest Economic News

Economics

Aug 04, 2026

Construction Job Openings Rising

The number of open positions in the construction sector increased in June, 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

Aug 03, 2026

Residential Construction Spending Slips as Remodeling Activity Weakens

Private residential construction spending declined 0.3% in June, while substantial downward revisions to improvement (remodeling) spending significantly altered the sector’s recent trajectory.

Economics

Jul 31, 2026

Housing’s Share of GDP Moves Lower in the Second Quarter

Housing’s share of the economy was 15.8% in the second quarter of 2026, according to the latest estimates of GDP produced by the Bureau of Economic Analysis. This share is down from 15.9% in the first quarter and is at the lowest level since 2019.