Bipartisan Senate Bill Would Help Increase Output of Transformers
With the strong backing of NAHB, Sens. Sherrod Brown (D-Ohio) and Ted Cruz (R-Texas), along with several other senators, introduced legislation to help ease the severe shortage of distribution transformers that is delaying home building projects and raising housing costs.
The Distribution Transformer Efficiency & Supply Chain Reliability Act of 2024 would establish a new standard that allows manufacturers to increase energy efficiency standards for transformers in a manner that will not delay production at a time when chronic shortages are harming the housing sector.
“NAHB commends Sens. Brown and Cruz for their leadership in bringing forward this strong bipartisan legislation that will give producers flexibility in the manufacturing process to increase the efficiency of distribution transformers and allow them to ramp up production to meet historic demand,” said NAHB Chairman Alicia Huey.
The Department of Energy (DOE) has proposed a rule that would marginally increase efficiency standards on distribution transformers and effectively require all distribution transformers to shift from the industry standard grain oriented electrical steel (GOES) cores to amorphous steel cores. GOES currently accounts for more than 95% of the domestic distribution transformer market, and manufacturers’ production lines are tooled for designs that use GOES. If the DOE proposal is enacted, it will further curtail the production of transformers at a time when they are needed now, more than ever.
The Senate bill would provide for increased energy efficiency of transformers, but at levels that preserve market opportunities for GOES as well as amorphous steel. Furthermore, the legislation would provide a phase-in window of 10 years before the new standard goes into effect to provide the certainty and time necessary for GOES and transformer supply chains to properly adapt to the new standards without further exacerbating supply-chain challenges.
Other bill cosponsors include Sens. Ted Budd (R-N.C.), Bob Casey (D-Pa.), John Fetterman (D-Pa.), Bill Hagerty (R-Tenn.), Joe Manchin (D-W.Va.), Pete Ricketts (R-Neb.), Marco Rubio (R-Fla.), Kyrsten Sinema (I-Ariz.), Jon Tester (D-Mont.) and Todd Young (R-Ind.).
Latest from NAHBNow
Jan 14, 2026
Applications for 2026 Leadership Grants and Scholarships Now OpenNAHB is invested in professional development opportunities for its members and providing exposure to NAHB leadership meetings to help foster future leaders for the home building industry. Applications are now open for select leadership grants and scholarships for qualified members to capitalize on these opportunities.
Jan 13, 2026
Podcast: Home Builders and Buyers Unsettled as 2026 BeginsOn the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez kick off the first podcast of 2026 looking at the state of housing, the political environment heading into a midterm year, and how builders and buyers are attempting to navigate the current market.
Latest Economic News
Jan 14, 2026
Building Material Price Growth Remains Elevated in NovemberResidential building material prices continued to experience elevated growth, according to the latest Producer Price Index release from the Bureau of Labor Statistics. Price growth has been above 3.0% since June this year, despite continued weakness in the new residential construction market.
Jan 13, 2026
New Home Sales Rise Year-Over-Year as Prices StabilizeThe new home sector has played an increasingly important role in meeting housing demand as resale inventory remains constrained in many regions. The latest data released today (and delayed because of the government shutdown in fall of 2025) indicate that new single-family home sales continue to reflect a stabilizing market after a period of heightened volatility.
Jan 13, 2026
Inflation Steady in DecemberInflation held steady in December, matching November’s reading, according to the Bureau of Labor Statistics (BLS) latest report. This December report was the first report to include a month-to-month figure since the government shutdown.