House Bill Would Repeal Onerous Energy Codes Grant Program
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.
Latest from NAHBNow
Economics
May 05, 2026
New Home Sales Rise, Supported by Limited Existing InventorySales of newly built single-family homes rose 7.4% in March, to a seasonally adjusted annual rate of 682,000, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales is up 3.3% from a year earlier.
Economics
May 05, 2026
NAHB Debuts New Resource That Estimates Quarterly Remodeling Spending by StateNAHB is debuting a new resource called the State Projections of Remodeling (SPR) that will provide a quarterly analysis of remodeling activity for each state in the nation based on total dollar volume, market share and change in remodeling spending.
Latest Economic News
Economics
May 04, 2026
Mortgage Rates Climb as Inflation Rebounds and Yields RiseMortgage rates continued to increase in April as ceasefire negotiations remain inconclusive. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.34% in April, 16 basis points (bps) higher than March. The average 15-year rate also increased by 13 bps to 5.69%. Despite the recent increase, both rates remain lower than a year ago by 39 bps and 21 bps, respectively.
Economics
May 01, 2026
Student Housing Construction Investment Holds Steady in the First Quarter of 2026Private fixed investment in student dormitories edged up 0.1% in the first quarter of 2026, holding at a seasonally adjusted annual rate (SAAR) of $3.9 billion. This modest gain marked a third consecutive quarterly increase, despite continued pressures from elevated interest rates. However, on a year-over-year basis, investments in dorms remained almost unchanged.
Economics
Apr 30, 2026
Housing’s Share of GDP Dips Below 16% for First Time Since 2019Housing’s share of the economy was 15.9% in the first quarter of 2026, according to the latest estimates of GDP produced by the Bureau of Economic Analysis. This share is down from 16.0% in the fourth quarter and is lower than 16.5% registered just one year ago.