House Bill Would Repeal Onerous Energy Codes Grant Program

Legislative
Published
Contact: Heather Voorman
[email protected]
AVP, Government Affairs
(202) 266-8425

NAHB has sent a letter to House Speaker Kevin McCarthy in support of the Lower Energy Costs Act (H.R. 1), legislation that would repeal a section of the Inflation Reduction Act that provides $1 billion to pressure state and local governments to adopt advanced energy codes.

“While NAHB supports the adoption of cost-effective, modern energy codes, we oppose these grant programs that prevent amendments to the energy code that accommodate local conditions and a cost-effectiveness analysis,” the letter to McCarthy stated.

NAHB believes that forcing the adoption of costly energy codes to qualify for these grants would exacerbate the current housing affordability crisis and limit energy choices for consumers. Adoption of the 2021 International Energy Conservation Code can cost a home buyer as much as $22,000 in additional costs and can take as long as 90 years to see a simple payback for these investments.

“Implementation of these grants would result in fewer families being able to achieve the American dream of homeownership,” said the letter to the House leadership. NAHB noted that efforts to push costly and restrictive energy codes across the country without an opportunity for local review overburden new construction and largely ignore the energy performance of the existing housing stock. New homes built to modern codes are already energy efficient which makes increasing code stringency often unnecessary.

H.R. 1 also repeals a provision in the Inflation Reduction Act that addresses energy efficiency in older homes. NAHB stands ready to work with Congress to develop a practical energy efficiency program that addresses the great need for energy efficiency improvements in older homes.

“NAHB supports H.R. 1 as it provides much needed common-sense energy solutions for our country while protecting consumer choice and preserving housing affordability,” the letter said. “We urge the House of Representatives to swiftly pass this legislation.”

Learn more about NAHB's advocacy efforts.

Subscribe to NAHBNow

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

Log in to subscribe

Latest from NAHBNow

Economics

Apr 09, 2026

Remodeling Market Sentiment Edges Down but Remains Positive in First Quarter

The National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the first quarter, posting a reading of 62. While this reading is down two points from the previous quarter, it is still solidly in positive territory.

Leadership Meetings | Board of Directors

Apr 08, 2026

Watch Livestream of Virtual Spring Board of Directors Meeting

The NAHB Board of Directors will convene virtually on Tuesday, April 14, at 10 a.m. ET. A livestream is available on nahb.org for NAHB members and HBA executive officers who would like to observe the meeting.

View all

Latest Economic News

Economics

Apr 09, 2026

Remodeling Market Sentiment Edges Down but Remains Positive in First Quarter

In the first quarter of 2026, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 62, down two points compared to the previous quarter. Despite this decline, the overall reading has been solidly in positive territory since Q1 2020.

Economics

Apr 08, 2026

Remodelers Saw Profit Margin Gains in 2024

Profitability for residential remodelers reached its highest level in more than two decades in 2024. Industry-wide profit benchmarks are important because they allow companies to evaluate their financial performance in context with the industry.

Economics

Apr 07, 2026

Rising Rates Weigh on Mortgage Activity

Mortgage application activity decreased month-over-month as the 30-year fixed mortgage rate rose. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, declined 4.3% from February on a seasonally adjusted basis but remained 30.8% higher than a year earlier.