U.S. Senator John Barrasso (R-Wyo.) has introduced the HOUSE Act, a bill aimed at repealing housing energy efficiency mandates enacted during the Biden administration. The legislation targets requirements from the Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) that mandate new construction financed by these agencies to comply with the 2021 International Energy Conservation Code.
Barrasso stated, “Our nation is facing a housing affordability crisis. Every day, American families are being priced out of the housing market. The Biden administration’s Green New Deal housing mandates make it even harder for young families to buy their first home. The HOUSE Act repeals these expensive mandates and gives Americans the tools they need to make their dream of owning a home a reality.”
Ken Gear, CEO of Leading Builders of America, commented on the impact of these standards: “Home affordability is one of the biggest concerns facing young and middle-class families in this country. First time buyers, young families, rural and lower income buyers are especially hard hit. Their biggest obstacle is saving for a downpayment – yet HUD’s Minimum Efficiency standards will unquestionably increase downpayment requirements. The HOUSE Act will help young families achieve the American dream by protecting the mortgage programs they rely on.”
The bill is cosponsored by several Republican senators including Shelley Moore Capito (R-W.Va.), Dan Sullivan (R-Alaska), Pete Ricketts (R-Neb.), Cynthia Lummis (R-Wyo.), Markwayne Mullin (R-Okla.), John Hoeven (R-N.D.), Kevin Cramer (R-N.D.), Marsha Blackburn (R-Tenn.), Bernie Moreno (R-Ohio), Deb Fischer (R-Neb.), Cindy Hyde-Smith (R-Miss.) and Todd Young (R-Ind.). In addition, Representative Andy Biggs (R-AZ-05) has introduced similar legislation in the House.
According to information released with the bill, updated International Energy Conservation Code standards issued in 2021 could add up to $31,000 to new home prices, with projected energy savings not realized for 90 years. Analysis from HUD and USDA in 2023 suggested that these changes would likely reduce new construction for Federal Housing Authority borrowers.
The Biden administration implemented these energy efficiency requirements in 2024 for all new single-family homes financed through federal housing agencies. HUD later extended compliance deadlines into late 2025 and mid-2026 for FHA-insured homes.
If passed, the HOUSE Act would repeal HUD and USDA’s final determination on energy efficiency standards for federally financed housing construction and require both agencies to revert to 2009 standards already in effect. It would also prevent similar mandates from being applied by the Department of Veterans Affairs or imposed by the Federal Housing Finance Agency without statutory authority. Additionally, it restricts future adoption of new efficiency mandates unless at least half of U.S. states have adopted them independently.
