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 | IBS | Advocacy
Sep 23, 2026
Chairman's Update: Top Events for Housing

2026 NAHB Chairman Bill Owens provides updates on key events for the residential construction industry, including why members should get out to vote this November and why now is a great time to register for the International Builders' Show.

Legal | Association Management
Sep 22, 2026
Indiana Supreme Court to Decide If an Association Can Sue on Behalf of Its Members

The legal doctrine of "associational standing" continues to face scrutiny across the country, and the latest challenge is now before the Indiana Supreme Court.

View all

Latest Economic News

Economics
Sep 21, 2026
Wood Framing Continues to Dominate Single-Family Construction

Wood framing continues to dominate the U.S. single-family home construction market, according to NAHB analysis of 2025 Census Bureau data. In 2025, wood framing accounted for 94% of all completed single-family homes, maintaining its position as the leading construction method.

Economics
Sep 18, 2026
State-Level Employment Situation: August 2026

State labor markets showed mixed results in August, with nonfarm payroll employment increasing in a majority of states. At the same time, construction employment posted a net gain nationally, although employment trends varied across states. The unemployment rate also remained relatively low in several states, while D.C. continued to record the nation’s highest rate.

Economics
Sep 17, 2026
Single-Family Starts Rebound but Market Challenges Persist

Single-family housing starts rebounded in August, but production remains down 4.7% year to date as builders contend with rising construction costs, lot and labor shortages, and economic uncertainty.