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years of uncertainty over where federal jurisdiction begins and ends, the Environmental Protection Agency today rescinded the Obama-era “waters of the U.S.” (WOTUS) rule.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

Economics
Sep 28, 2026
Median Revenue of NAHB Remodelers Grows 24%

According to the NAHB Member Census, 21% of NAHB builder members listed residential remodeling as their primary business. These remodelers tend to be relatively small, with a median of five employees and a median annual revenue of $2.1 million.

Labor
Sep 25, 2026
NAHB Amicus Brief Argues for Fair Due Process for Workers

NAHB filed an amicus brief in the Fifth Circuit immigration case Sosnava Rodriguez v. Ortega. The case asks whether a person who entered the United States without official inspection may seek release on bond from a judge while the government considers deportation.

View all

Latest Economic News

Economics
Sep 28, 2026
NAHB Remodelers: What the Data Says

Twenty-one percent of NAHB builder members listed residential remodeling as their primary business, according to the 2025 Member Census. These remodelers tend to be relatively small, with a median of five employees and a median annual revenue of $2.1 million. This means that remodelers are even smaller than NAHB builder members, who had a median of six employees and median annual revenue of $3.7 million, as reported in a recent post.

Economics
Sep 25, 2026
State and Local Government Tax Revenue Grows

Total tax revenue collected by state and local governments was up 5.8% from a year ago in the second quarter, according to the Quarterly Summary of State and Local Government Tax Revenue published by the U.S. Census Bureau. This was the highest year-over-year growth since the third quarter of 2024 (7.2%).

Economics
Sep 24, 2026
New Home Sales Rise as Affordability Challenges Continue

New home sales improved in August, but the monthly gain masked continued weakness in the broader new-home market. Elevated mortgage rates and ongoing affordability challenges continue to constrain demand, with new home sales remaining below last year’s pace and year-to-date sales lower than in 2025.