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

Construction Statistics | Multifamily

Mar 23, 2026

Best Year for Multifamily Missing Middle Construction Since 2007

Although not a huge jump, 2025 featured the highest construction volume for multifamily missing middle housing starts since 2007. However, this subsector continues to underperform relative to its potential, due in part to zoning restrictions.

Safety

Mar 23, 2026

Roofing Safety in Home Building Starts at the Top

Roofing is an inherently dangerous job, with workers exposed to the elements at height on a pitched surface with few natural barriers. Due to this reality, it’s also the job with the most safety resources and products.

View all

Latest Economic News

Economics

Mar 24, 2026

Almost Half of the Owner-Occupied Homes Built Before 1980

Around 47% of the U.S. housing stock was built in the 1980s and earlier. The median age of owner-occupied homes climbed to 42 years old in 2024, up from 31 in 2005 according to the latest data from the American Community Survey.

Economics

Mar 23, 2026

Comparing New and Resale Prices: 4Q25

In the fourth quarter of 2025, the median price for a new single-family home was $405,300, which was $9,600 lower than the median price of an existing home, which stood at $414,900.

Economics

Mar 23, 2026

Demolition Activity Slows Down But Remains Above Pre-Pandemic Levels

Residential demolition activity in 2025 declined 0.1% year-over-year but remained above pre-pandemic levels. According to NAHB analysis of data from Construction Monitor, permits pulled for residential demolition have been increasing since 2018, with the exception of 2020, when building-related activities broadly stalled.