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

Membership | Awards

Apr 16, 2026

HBAs Celebrated for Member Growth and Retention with Grand Awards

The latest Grand Awards winners include 22 local associations and 10 state associations.

Membership

Apr 15, 2026

NAHB Mourns the Passing of Former Wichita Area BA President and CEO Wess Galyon

Wesley “Wess” Galyon, who served as president and CEO of the Wichita Area Builders Association for forty years, passed away.

View all

Latest Economic News

Economics

Apr 16, 2026

Young Adults Report More Interest in the Construction Trades: 2026 Survey

NAHB estimates the U.S. has a structural housing deficit of 1.2 million units. Among the myriad of headwinds home builders face trying to close that gap is the industry’s chronic shortage of workers in the construction trades.

Economics

Apr 15, 2026

Builder Sentiment Posts Notable Decline on Economic Uncertainty

Economic uncertainty coupled with rising building material costs and interest rates resulted in a sharp decline in builder sentiment in April as the housing market enters into the heart of the spring buying season.

Economics

Apr 14, 2026

Higher Energy Prices Increase Residential Construction Costs

Energy input prices increased in March at their fastest pace since June of 2020 as the conflict in Iran shocked critical global supply chains. Building material prices, excluding energy, rose for the eleventh straight month. Price growth for trade services slowed while transportation and warehousing price growth accelerated.