Bipartisan Senate Bill Would Help Increase Output of Transformers
With the strong backing of NAHB, Sens. Sherrod Brown (D-Ohio) and Ted Cruz (R-Texas), along with several other senators, introduced legislation to help ease the severe shortage of distribution transformers that is delaying home building projects and raising housing costs.
The Distribution Transformer Efficiency & Supply Chain Reliability Act of 2024 would establish a new standard that allows manufacturers to increase energy efficiency standards for transformers in a manner that will not delay production at a time when chronic shortages are harming the housing sector.
“NAHB commends Sens. Brown and Cruz for their leadership in bringing forward this strong bipartisan legislation that will give producers flexibility in the manufacturing process to increase the efficiency of distribution transformers and allow them to ramp up production to meet historic demand,” said NAHB Chairman Alicia Huey.
The Department of Energy (DOE) has proposed a rule that would marginally increase efficiency standards on distribution transformers and effectively require all distribution transformers to shift from the industry standard grain oriented electrical steel (GOES) cores to amorphous steel cores. GOES currently accounts for more than 95% of the domestic distribution transformer market, and manufacturers’ production lines are tooled for designs that use GOES. If the DOE proposal is enacted, it will further curtail the production of transformers at a time when they are needed now, more than ever.
The Senate bill would provide for increased energy efficiency of transformers, but at levels that preserve market opportunities for GOES as well as amorphous steel. Furthermore, the legislation would provide a phase-in window of 10 years before the new standard goes into effect to provide the certainty and time necessary for GOES and transformer supply chains to properly adapt to the new standards without further exacerbating supply-chain challenges.
Other bill cosponsors include Sens. Ted Budd (R-N.C.), Bob Casey (D-Pa.), John Fetterman (D-Pa.), Bill Hagerty (R-Tenn.), Joe Manchin (D-W.Va.), Pete Ricketts (R-Neb.), Marco Rubio (R-Fla.), Kyrsten Sinema (I-Ariz.), Jon Tester (D-Mont.) and Todd Young (R-Ind.).
Latest from NAHBNow
Apr 22, 2026
Jobsite Visits Offer Florida Teens Firsthand Look into the TradesThrough the Charlotte DeSoto Building Industry Association, Florida students are exploring the skilled trades by shadowing certified professionals on active jobsites.
Apr 21, 2026
NY Governor Spotlights Importance of Home Building at HBA Awards CeremonyHighlighting her “Let Them Build” agenda, Hochul explained the struggle for young adults in the region to purchase an apartment or starter home, and her proposed solutions to help fix the issue.
Latest Economic News
Apr 21, 2026
Population Growth and Housing Supply Dynamics at the County Level in 2025U.S. population growth slowed notably in the latest Vintage 2025 population estimates from the U.S. Census Bureau, with the nation expanding by just 0.5% in 2025, roughly half the pace of the prior year. The deceleration was primarily driven by a sharp decline in net international migration (NIM), which dropped from 2.7 million to 1.3 million, while natural change remained relatively stable.
Apr 20, 2026
Construction Workforce Shifts: Fewer Tradesmen, More White-Collar JobsThe long-running shift in the construction labor force away from construction trades and toward management, business, and technical roles is ongoing and gaining momentum, according to NAHB’s analysis of the latest 2024 data from the American Community Survey (ACS).
Apr 17, 2026
Count of Second Homes Declines in 2024In 2024, the number of second homes in the U.S. was 6.2 million, accounting for 4.3% of the nation’s housing stock, according to NAHB estimates. This reflects a modest decline from 2022, when the number reached 6.5 million. This decline suggests some cooling following the pandemic-era surge in second home demand.