New York Gas Ban Suspended While NAHB and NY HBA Appeal

In a major victory in the long legal battle over New York’s statewide gas ban for new homes, NAHB and the New York State Builders Association (NYSBA) have secured a suspension of the new regulations while the case works through the appeals process.

After extensive negotiation, attorneys for the state agreed to a stipulation suspending implementation of a state law passed in 2023 that bans the use of natural gas in any new construction of under seven stories, including homes, beginning Jan. 1, 2026.

If NAHB and NYSBA are unsuccessful in the appeal, the state has agreed to a 120-day grace period before the gas ban is effective.

Currently, the case is being briefed in the Second Circuit Court of Appeals. If the appeal does not work at that level, the next step would be to ask the U.S. Supreme Court to hear the case.

In 2023, New York passed the All-Electric Buildings Act, and NAHB joined a broad coalition challenging the measure in October 2023. It is the first statewide ban on natural gas use in new residential construction. NAHB and its partners argue that federal regulations supersede the state law.

In July 2025, a federal district judge ruled in favor of the state. Since the summer, NAHB, NYSBA, and others have been negotiating with New York officials on the path forward for implementation during the appeals process, ultimately securing this week’s delay in implementation.

But cracks were beginning to show recently in the coalition backing the new law. Just last week, 17 New York State Assembly members — all members of Gov. Kathy Hochul’s Democratic Party — sent a letter to the governor urging her to delay the new rules over housing affordability concerns and the additional strain on the nation’s electric grid. They called for the creation of a task force to study the impact of the rules on housing costs and grid strain.

NAHB and NYSBA also recently sent a letter to U.S. Attorney General Pam Bondi asking her office to take action on the gas ban.

NAHB is opposed to blanket bans on energy sources in residential construction. Natural gas bans, while well intended for environmental impact, limit consumer choice and can lead to higher utility bills. Gas bans also have the unintended consequence of placing additional strain on a national electric grid already buckling under the recent surge of data center construction in the U.S.