EPA Repeals Obama-Era WOTUS Rule

Environment
Published

In a positive development to resolve years of uncertainty over where federal jurisdiction begins and ends, the Environmental Protection Agency today rescinded the Obama-era “waters of the U.S.” (WOTUS) rule.

“NAHB commends the EPA and U.S. Army Corps of Engineers for repealing the 2015 WOTUS rule that vastly expanded federal overreach over water and land use by regulating man-made ditches and isolated ponds on private property,” said NAHB Chairman Greg Ugalde.

“By repealing the 2015 rule, the EPA and Corps have finally provided consistency among all 50 states, which will make the federal permitting process more predictable and affordable," he added. "Now, the agencies need to finalize a new definition that restores common sense to the regulatory process by respecting states' rights and balancing economic and environmental concerns.”

The 2015 WOTUS rule has been subject to several legal challenges that halted its implementation nationwide. Last month, the U.S. District Court for Georgia issued a decision finding that the substance of the rule violates the Clean Water Act. The court remanded the rule back to the agencies to fix it.

Prior to EPA's repeal announcement, the Obama-era rule was in effect in 22 states and the District of Columbia, and the previous regulations issued in 1986 were in effect in the remaining 28 states. The EPA decision means the 1986 rule will now be in effect in nationwide until a final replacement rule is issued.

The Trump administration has proposed a new WOTUS rule that NAHB generally supports. The proposed rule would clarify the extent of federal oversight and correct the vast overreach of prior rules.

Once finalized, builders and developers will be better able to determine for themselves whether they will need federal permits for construction activities. And, because the proposed rule narrows the extent of federal jurisdiction by excluding isolated water bodies, "ephemeral" waters that only form in response to rain, and most ditches, builders should require fewer Clean Water Act permits for isolated or temporary wetlands or water bodies.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Awards | IBS

Feb 19, 2026

NAHB Announces 2025 Best in American Living Awards Winners

The National Association of Home Builders (NAHB) announced the winners of the 2025 Best in American Living™ Awards (BALA) during the NAHB International Builders’ Show in Orlando. The awards are sponsored by Smeg.

IBS

Feb 19, 2026

NAHB Honors the Industry’s Top Achievements at The Nationals

The National Association of Home Builders (NAHB) honored top achievements in residential real estate sales, marketing, individual achievement and global excellence at The Nationalsâ„  Awards Gala (sponsored by Chase) during the NAHB International Builders’ Show in Orlando. Awards were also presented for the 55+ housing, NAHB Honors and Global Innovation award categories.

View all

Latest Economic News

Economics

Feb 19, 2026

Delinquency Rates Normalize While Credit Card and Student Loan Stress Worsens

Delinquent consumer loans have steadily increased as pandemic distortions fade, returning broadly to pre-pandemic levels. According to the latest Quarterly Report on Household Debt and Credit from the Federal Reserve Bank of New York, 4.8% of outstanding household debt was delinquent at the end of 2025, 0.3 percentage points higher than the third quarter of 2025 and 1.2% higher from year-end 2024.

Economics

Feb 18, 2026

Overall Housing Starts Inch Lower in 2025

Despite a strong finish in December, single-family home building dipped in 2025 as persistent affordability challenges continued to weigh on the market.

Economics

Feb 18, 2026

How Housing Affordability Conditions Vary Across States and Metro Areas

The NAHB 2026 priced-out estimates show that the housing affordability challenge is widespread across the country. In 39 states and the District of Columbia, over 65% of households are priced out of the median-priced new home market. This indicates a significant disconnect between higher new home prices, elevated mortgage rates, and household incomes.