May 12, 2025 • View in browser

NLBMDA Weekly is our newsletter covering everything from goings on in Washington to updates from our members. This is the premier source of federal legislative, regulatory, and industry news for NLBMDA members.

NLBMDA on Capitol Hill during Important Week for Congress’ Tax Bill

This week, the House Ways and Means, Energy and Commerce, and Agriculture committees plan to mark up their respective portions of the reconciliation bill. So far eight committees have advanced their respective portions of the reconciliation bill. The three markups expected this week have been the most internally divisive for lawmakers which has led to their markups being delayed as lawmakers work to find compromise over areas of disagreement.

The House Ways and Means Committee, the chief tax-writing committee, is tasked with extending expiring tax cuts while also working to resolve strong disagreements on key details for each provision. Energy and Commerce (E&C) and House Agriculture have both been tasked with finding the savings to offset the tax cuts that the Ways and Means Committee advances. Pursuant to the budget resolution passed by Congress, E&C must find $880 billion in savings over the next 10 years. Democrats have repeatedly pressed Republicans on if cuts to Medicaid would be made to achieve these savings. The House Agriculture committee has been directed to identify $230 billion in savings. House Agriculture Chair GT Thompson (R-GA) has stated he would not target reductions in the SNAP Program to achieve these cuts despite suggestions from deficit-focused Republican lawmakers on the committee. Speaker Mike Johnson (R-LA) has remained confident that the House can advance the reconciliation bill to the Senate prior to the Memorial Day holiday. Over the next few critical weeks for the tax bill, NLBMDA will be engaging with lawmakers and their staff to ensure NLBMDA priorities are included in the reconciliation bill. 

Sens Todd Young (R-ID), Mark Warner (D-VA) Reintroduce Neighborhood Homes Investment Act

Senators Todd Young (R-IN) and Mark Warner (D-VA) have reintroduced the Neighborhood Homes Investment Act (NHIA), a bipartisan bill designed incentive new residential construction in distressed neighborhoods. The bill would establish a new federal tax credit, similar to LIHTC, to help cover the cost difference between building or renovating a home and its sale price.



Under NHIA, tax credits would only be issued after homes are completed and sold to income-eligible buyers. The program targets census tracts with high poverty and low home values and is projected to support the construction or rehab of over 500,000 homes over 10 years, generating more than 1 million jobs in construction and construction related fields. Earlier this year, a House companion bill was introduced by Reps. Mike Kelly (R-PA) and John Larson (D-CT). NLBMDA has been a strong advocate for the legislation and continues to meet with lawmakers and legislative staff to build support for the legislation.

NLBMDA Releases One-Pagers Promoting Its Mission

Who are NLBMDA's members? How is NLBMDA structured? What are NLBMDA's legislative priorities? What has NLBMDA accomplished?

These are great questions! That's why the NLBMDA team put together three explainers to answer all you need to know need to know about the association. Since 1917, NLBMDA has represented over 6,000 member locations operating single or multiple lumber yards and component plants serving homebuilders, subcontractors, general contractors, and consumers in the new construction, repair and remodeling of residential and light commercial structures. These informational resources will help you share who we are and what we're doing in 2025.

A Peek at the Speakers for the 2025 ProDealer Industry Summit

The ProDealer Industry Summit offers exclusive, live educational forums designed to promote the growth of lumber & building product dealers, distributors, wholesalers, and the manufacturers who supply them. Hear from industry professionals ranging from independent dealers, technology specialists, to up-and-coming next generation leaders:



• Jason Blair, CEO of TAL Building Centers
• Adam Collins, Store Manager at S.W. Collins Company
• Don Longo, Editorial Director Emeritus of Convenience Store News at EnsembleIQ
• Nichole Mitchell, Vice President of People and Culture at Wilson Lumber
• Adam Gunnett, Director of IT and Business Intelligence, Busy Beaver Building Centers

Register now to receive an early bird discount!

Florida Building Material Alliance to Host 2025 Building Products Expo

White House Sends “Skinny” Budget Request to Congress

President Trump has sent his fiscal Year (FY) 2026 budget request to Congress. The request contains a series of recommendations on discretionary funding levels for the next fiscal year. For now, the White House has only released a “skinny” budget with a line-by-line budget request expected later this month. The proposal recommends that Congress reduce non-defense spending by 17% and increase national security spending by 13%. The budget request calls for the elimination of HUD’s HOME program, a formula grant that provides state and local governments with funding to expand housing supply. As proposed, HUD’s annual funding would be reduced by 43.6%, the second largest percentage reeducation proposed for any agency by the White House.  

In recent years, Congress has typically charted its own path in drafting an appropriations bill disproving the old adage that the president proposes and the congress disposes. Lawmakers on both sides of the aisle have signaled concerns with the budget proposal further suggesting that Congress is likely to draft its own appropriations bill. Lawmakers will have the summer to draft an appropriations bill before they face the next government shutdown deadline, September 30th. 

White House Calls for Four-Year Full Expensing in Reconciliation Bill

President Trump has called on lawmakers to restore full 100% bonus deprecation, also known as full expensing, in Congress’s reconciliation bill. Over the last few months, NLBMDA has been meeting with lawmakers to ensure that the restoration of 100% bonus deprecation remains a top priority for the tax bill. The 2017 Tax Cuts and Jobs Act (TCJA) allowed businesses to reduce the costs of purchasing new equipment and machinery through the use of full expensing. In 2022 full expensing began phasing out and is currently set at 40 percent.



The President has recently renewed his call to restore the tax savings tool though has suggested that full expensing would only be extended for a four-year period in the new tax bill. The White House and Congress are undertaking a delicate balancing act of determining what provisions to include in the new tax bill and for how long. NLBMDA in meetings with lawmakers have called for Congress to permanently restore full expensing as numerous studies have shown that permanently extending full expensing will provide businesses with long-term certainty and promote investment.

Trump, Carney, Meet in Oval Office Following Canadian National Election

Last week President Trump hosted newly elected Canadian Prime Minister Mark Carney at the White House following a come-from-behind win for the Canadian Labour Party in the country’s national election. The meeting in the oval office was primarily centered around trade between the two countries as world leaders around the globe have been working to obtain carveouts from the administration’s wide sweeping tariffs. Prior to the meeting President Trump posted on Truth Social that the United States does not need Canadian lumber, renewing a promise to increase domestic timber production while also raising duties on imported lumber. In meetings with lawmakers and stakeholders in Washington, NLBMDA has supported efforts to increase domestic timber production but have also cautioned that raising duties on Canadian softwood lumber would harm consumers and increase uncertainty in the marketplace.  

Treasury Secretary: US to Hit Debt Limit by August, Absent Congressional Action

U.S. Treasury Secretary Scott Bessent sent a letter to Speaker Mike Johnson (R-LA) last Friday warning that the U.S. is projected to exhaust extraordinary measures currently being undertaken to prevent the U.S. from hitting the debt ceiling by this August. In the letter, Bessent called on Congress to increase or suspend the debt ceiling or risk the United States’ defaulting on its own debt. “I respectfully urge Congress to increase or suspend the debt limit by mid-July, before its scheduled break, to protect the full faith and credit of the United States,” Bessent’s letter to Congress read. The reconciliation bill that House and Senate Republicans are working to advance would include an increase of the debt limit by approximately $5 trillion. Prolonged delays reconciling the details of the bill could put the United States at jeopardy of reaching the debt limit. Earlier this month the Congressional Budget Office (CBO) projected a similar date of late summer for when the U.S. is anticipated to hit its “X Date," the day the U.S. government would no longer be able to fulfil its debt obligations. 

NLBMDA Sends Letter to House Education & Workforce Committee over Proposed OSHA Heat Standard 

Last week NLBMDA, in partnership with the National Federation of Independent Business, sent a trades letter to House Education & Workforce Committee urging the committee to pass legislation that would prevent the finalization of a Biden-era OSHA heat standard. Earlier this year NLBMDA submitted formal comments to OSHA warning that the one-size-fits-all approach proposed by OSHA would add burdensome new mandates for small business. NLBMDA also expressed concern with the blanket standard the Heat Rule would prescribe to all businesses regardless of regional climate variations. Later this week the committee will conduct a hearing titled, “Reclaiming OSHA’s Mission: Ensuring Safety without Overreach.” The hearing will examine a variety of Biden-era proposed rules including the proposed Heat standard. 

EPA Reportedly Considering Scraping Energy Star Program

Recent reporting has indicated that the U.S. Environmental Protection Agency (EPA) is considering an internal restructuring which would eliminate Energy Star, the energy-efficiency program administrated by the federal government that has established energy efficiency specifications for over three decades. Over 75 product categories are eligible for Energy Star certification including single-family new construction and multifamily new construction projects. A rollback of the Energy Star program may impact eligibility for applicants of incentive programs designed to increase the production of new energy efficient homes.

In 2023, the Inflation Reduction Act expanded and reformed the 45L Tax Credit, a tool created to incentivize developers to construct energy-efficient homes. If fully maximized, the tax credit can be worth up to $2,500 for each home constructed that conforms with the requirements established by Energy Star. EPA has not publicly commented on or announced formal plans to dismantle the program. In 2005, Congress passed the Energy Policy Act of 2005 (Pub Law. 109-58) which directed EPA to maintain the integrity of the Energy Star label. Given this, EPA may be unable to dismantle the program without receiving express consent from Congress. NLBMDA will continue to closely monitor any developments related to the proposed actions EPA may take towards the Energy Star program. 

Weyerhaeuser terrestrial unit works to protect injured eagle

Though bald eagles were removed from Oregon’s Endangered Species List in 2012, the birds are still noteworthy as they fly over our South Valley timberlands. Weyerhaeuser staff biologists consider them a sensitive species and track their movements in the area. So when a crew spotted an injured eagle on the side of a logging road last November, they moved quickly to help.

LBM Advantage marks 6th annual NextGen Conference

LBM Advantage recently held its sixth annual NextGen Conference at the Gaylord Texan in Grapevine, Texas. The leadership development gathering welcomed rising professionals from across the cooperative for a packed agenda of industry insights, exclusive site tours, peer networking and social outings.

This year’s highlights included behind-the-scenes tours of Simpson Strong-Tie’s nearby facilities and the Cameron Ashley Distribution Center, providing attendees with first-hand exposure to industry-leading operations and supply chain strategy.

HBSDealer asks: Who’s got next?

HBSDealer produces a number of marquee editorial projects, from the Golden Hammer Awards ot the Hardware-All Stars to the Top 150 Industry Scoreboard. Now comes a project with even more potential to shape the future of the industry: The Top 150 Next-Gen Leaders. We’re asking leaders of companies in the hardware and building supply industry to nominate up to two rising leaders from within their organization.

Webb Analytics releases free 2025 Construction Supply 150 report

The 2025 Construction Supply 150, powered by Webb Analytics, reveals and analyzes how much America’s key lumber and building material operations changed in 2024. This 59-page PDF covers 150 LBM dealers, home centers, and hardware chains that in 2024 took in close to $412 billion, including $17 billion in Canada and Mexico. It also shows how different segments of the 150 grew (or shrank) vs. previous year. No other publicly available report is so comprehensive.

Kodiak Building Partners CEO Steve Swinney writes "Tariffs aren’t the whole story"

Since the beginning of the year, tariffs being imposed by the United States on imported goods have created questions, confusion, uncertainty and shifts in the home building industry. As a result, import costs on nearly every building material are expected to increase, with the cost of steel, aluminum and lumber being most affected because they typically arrive from Mexico, Canada and China.

There is no doubt tariffs will bring about project delays from supply chain disruptions and impact prices, but it is shortsighted to think they are the sole driver of higher prices. There are several factors contributing to economic concern within the building materials industry and threatening the health of the housing market. Of most consequence are interest rates and affordability. Every building supply company should take these into consideration, alongside the effects of tariffs, as they assess how to respond - in the short and long term - to these threats to the housing market.