Only Two Weeks Left
 
Take the Industry Pulse Check Today. Learn more
 

NAHB Urges SCOTUS to Restrain Federal Agencies’ Power to Interpret Regulations

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

NAHB is continuing its ongoing battle to rein in excessive regulations and overzealous federal regulators. Most recently on the legal front, NAHB has filed a friend-of-the-court brief in an upcoming Supreme Court case that seeks to overturn a previous Supreme Court decision made decades ago that gives the government an unfair advantage when someone challenges a regulation in court.

In 1984, the Supreme Court issued an opinion in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. That opinion created the “Chevron Doctrine,” which requires courts to abide by a statute if it is “clear,” but also requires courts to defer to a federal agency’s interpretation of an unclear statute if the interpretation is “reasonable,” even if it is not the best interpretation. In other words, Chevron gives federal agencies wide latitude to interpret the scope of regulations.

The Supreme Court will hear oral arguments next term in Loper Bright Enterprises v. Raimondo, where the court has been asked to overturn the Chevron ruling. The Loper case involves a group of commercial fishermen who challenged a National Marine Fisheries Service regulation that requires the fishing industry to pay for the costs of observers who monitor compliance with fishery management plans.

Relying on Chevron, the U.S. Court of Appeals for the District of Columbia Circuit rejected the companies’ challenge to the rule. The court explained that federal fishery law is clear that the government can require fishing boats to carry observers. However, the statute is silent on who must pay for the observers. The court deferred to NMFS’s interpretation of the law that required the fishermen to pay for the observers because it was “reasonable.”

The Supreme Court agreed to hear the fishermen’s challenge in May, and NAHB filed an amicus brief in the case calling for Chevron to be overturned.

Over the past 40 years, numerous problems have been uncovered due to Chevron.

First, it clearly is biased toward federal agencies by granting them broad leeway to interpret and implement regulations.

Second, Chevron puts too much power in the hands of the unelected agencies. As part of the executive branch, the federal agencies must enforce the laws. However, because Congress also delegates its authority to write the regulations, the agencies both create and enforce many laws. Chevron adds to that problem by putting a “thumb on the scale” in court. Thus, the power of the legislature, executive and judicial branches are merged in the hands of unelected bureaucrats.

Finally, Chevron gives Congress an incentive to write ambiguous laws. Lawmakers want to get statutes passed. Chevron, however, allows Congress to forgo doing the difficult work of drafting clear laws by letting it pass the work off to the agencies. The agencies can then continuously change the law – and the intent of Congress – by implementing their own interpretation as long as they are “reasonable.”

Subscribe to NAHBNow

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

Log in to subscribe

Latest from NAHBNow

Safety

Jun 05, 2026

NAHB Completes Fall Prevention Training Pilot Program at 20 HBAs Across U.S.

NAHB, the Job-Site Safety Institute (JSI), and the National Housing Endowment (NHE) are proud to announce the successful completion of the Fall Prevention Training Pilot Program.

Economics

Jun 04, 2026

U.S. House Price Appreciation Slows from Rapid Pandemic-era Pace

Higher mortgage rates, persistent affordability challenges and softer demand weighed on price growth nationally. Local market conditions varied, with some states and metro areas seeing solid gains while others saw declining or flattening house prices.

View all

Latest Economic News

Economics

Jun 05, 2026

U.S. Labor Market Remains Resilient in May

Despite rising inflation and ongoing economic uncertainty, the U.S. labor market remained resilient in May. Nonfarm payrolls increased for the third consecutive month, and the unemployment rate held steady at 4.3%.

Economics

Jun 04, 2026

Mortgage Rates Increase Further as Inflation Remains Elevated

Mortgage rates continued to increase in May as inflation accelerated. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.41% in May, up 7 basis points (bps) over April.

Economics

Jun 04, 2026

Highest Paid Occupations in Construction in 2025

The median wage of payroll workers in construction was $61,370 in 2025, with the top 25% earning at least $83,480. In comparison, the U.S. median annual wage was $50,980, while workers in the top quartile (the highest paid 25%) earned at least $80,520.