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years of uncertainty over where federal jurisdiction begins and ends, the Environmental Protection Agency today rescinded the Obama-era “waters of the U.S.” (WOTUS) rule.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

Advocacy | Environment

May 26, 2026

EPA Finalizes Refrigerant Rule Update to Allow Older HVAC Unit Installation

The EPA today published a final rule that will allow the continued installation in new homes of existing HVAC units manufactured or imported prior to Jan. 1, 2025, that use R-410A refrigerant until existing supplies are depleted.

Business Management

May 26, 2026

NAHB Publication Offers Remodelers Sneak Peek into Industry Financials

BuilderBooks, the publishing arm of NAHB, released a new edition of its Remodelers’ Cost of Doing Business Study, 2026 Edition, a national study of remodelers’ business practices and financial performance.

View all

Latest Economic News

Economics

May 26, 2026

First Quarter 2026 Multifamily Construction Data

According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased year-over-year during the first quarter of 2026. For the quarter, 107,000 multifamily residences started construction.

Economics

May 25, 2026

Custom Home Building – A Bright Spot for Construction

With overall single-family construction down 5% for the first four months of 2026, custom home building has been a relative bright spot. The custom building market is less sensitive to the interest rate cycle than other forms of home building but is more sensitive to changes in household wealth and stock prices.

Economics

May 25, 2026

Single-Family Built-to-Rent Slowed at Start of 2026

Single-family built-for-rent (or built-to-rent, BTR) construction fell back in the first quarter of 2026, as a higher cost of financing, increased multifamily supply and policy concerns over Congressional legislation related to institutional capital froze parts of the development market.