In a Win for NAHB Members, Biden WOTUS Rule Struck Down in 26 States

Legal
Published
Contact: Thomas Ward
[email protected]
VP, Legal Advocacy
(202) 266-8230

In a major victory for developers and landowners, the U.S. District Court for the District of North Dakota has ruled that the Biden “waters of the U.S.” (WOTUS) rule cannot be implemented in 24 states while the challenge to the rule moves forward.

NAHB and 17 other industry groups are a party to this case and the court ruling adds to the two-state preliminary injunction we received by a Texas court several weeks ago, meaning that the Biden WOTUS rule cannot currently be enforced in 26 states – more than half the nation.

A third challenge that NAHB did not participate in was brought in Kentucky, but that case was dismissed.

In its 45-page ruling, the North Dakota court cited several arguments that the states made in their request for a preliminary injunction:

  • “The Court finds that the new 2023 Rule is neither understandable nor ‘intelligible,’ and its boundaries are unlimited.”
  • “The treatment of tributaries under the new 2023 Rule is suspect.”
  • “The Court notes that the treatment of wetlands is plagued with uncertainty.”
  • “The phrase ‘waters of the United States’, a term that has been hopelessly defined for decades, remains even more so under the 2023 Rule. It is doubtful Congress endorsed the current efforts to expand the limits of the Clean Water Act… There is little that is intelligible about the 2023 Rule and the broad scope of its jurisdiction.”
  • “This Court agrees there are serious constitutional concerns triggered by the implementation of the EPA’s new 2023 Rule.”

As a result of the North Dakota and Texas court decisions, injunctions against the Biden WOTUS rule are now in effect in the following states:

Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming.

The U.S. Supreme Court will also be issuing a ruling in the coming weeks in the case of Sackett v. EPA, which is squarely focused on the legality of the significant nexus text, a critical part of the Biden WOTUS rule.

A verdict for Sackett would mean that the administration would essentially have to scrap its WOTUS rule. NAHB continues to call on the administration to craft a new WOTUS rule that restores common sense and predictability to the federal wetlands permitting process while maintaining environmental protection of our nation’s waterways.

Subscribe to NAHBNow

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

Log in to subscribe

Latest from NAHBNow

Economics
Oct 08, 2026
Remodeling Market Sentiment Remains Stable in Third Quarter Despite Headwinds

The National Association of Home Builders (NAHB) released the NAHB Remodeling Market Index (RMI) for the third quarter, posting a reading of 62—up one point compared to the previous quarter.

Trends
Oct 07, 2026
Share of Homes With Two-Story Foyers Increases For First Time Since 2022

For the first time since 2022, the share of new homes with two-story foyers increased, according to the Census Bureau's Survey of Construction (SOC). Despite the increase, the market share of two-story foyers has generally trended downward since 2017, with most new single-family homes being built without a two-story foyer both nationally and regionally.

View all

Latest Economic News

Economics
Oct 08, 2026
Remodeling Market Sentiment Remains Stable in Third Quarter Despite Headwinds

In the third quarter of 2026, the NAHB Remodeling Market Index (RMI) posted a reading of 62, up one point compared to the previous quarter. The RMI has remained within a narrow band between 59 and 70 for the past four years.

Economics
Oct 07, 2026
ARM Share Increased as Mortgage Rates Spiked

Mortgage application activity declined as the 30-year fixed mortgage rate rose sharply. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, decreased 7.7% month-over-month in September on a seasonally adjusted basis. Compared to a year ago, total mortgage applications were lower by 35.4%.

Economics
Oct 06, 2026
Mortgage Rates Rise as Treasury Yields Top 5%

Mortgage rates rose sharply in September as multiple factors applied significant upward pressure on the U.S. treasury yields. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.86% in September, up nearly 20 basis points (bps) from August.