January 21, 2025 • View in browser

Formerly "Dealer Digest," NLBMDA Weekly is the premier source of federal legislative, regulatory, and industry news for NLBMDA members.

Congressional Republicans Reintroduce Corporate Transparency Act Repeal Bill, SCOTUS Takes Up Injunction

Rep. Warren Davidson (R-OH) has reintroduced legislation which, if signed into law, would enact a full repeal of the Corporate Transparency Act (CTA). H.R.425 - To repeal the Corporate Transparency Act, has already received 68 cosponsors and a Senate companion bill, S.100, has been introduced by Sen. Tommy Tuberville (R-AL) which currently has 24 cosponsors.

The reintroduction of this legislation occurs amid an ongoing court battle between small businesses and the U.S. Department of Justice over the constitutionality of the CTA. As NLBMDA previously reported, a temporary nationwide injunction was reinstated on December 26th, once again halting the enforcement of a January 1, 2025 reporting deadline to submit Beneficial Ownership Information (BOI) reports with FinCEN.

Last week, 13 House Republicans alongside Senator Tillis (R-NC) submitted an amicus brief to the U.S. Supreme Court recommending that the CTA nationwide injunction remain in place. Over a dozen parties have submitted similar briefs to the Supreme Court expressing support for the temporary injunction.

For additional Information, see our latest NLBMDA Member Alert on the CTA.

President Trump Inaugurated as 47^th President

Yesterday in a subfreezing Washington D.C., President Trump officially took the presidential oath of office inside the rotunda of the United States Capitol. President Trump has become only the second of seven former Presidents to successfully retake the White House. Throughout his first day, Trump signed a total of twenty-six executive orders, the most in recent history. The President inherits a Republican controlled House and Senate who have already been at work implementing his legislative agenda and confirming the hundreds of senior level officials which require Senate confirmation.

“The National Lumber and Building Material Dealers Association congratulates President Trump on the historic occasion and is committed to working with the new Congress and Trump administration in advancing the legislative priorities of the LBM industry,” says NLBMDA President & CEO Jonathan Paine. 

Register Today for the 2025 Spring Meeting and Legislative Conference

NLBMDA is excited to announce that registration is now open for its Spring Meeting and Legislative Conference to be held in Washington, D.C. from April 1-2 at the Westin Washington, D.C. City Center. This premier event is an incredible opportunity to remind leaders of the importance of our industry and advance the advocacy agendas of NLBMDA. This conference includes many opportunities to learn about key issues affecting the lumber and building material industry from Washington policy experts.

The event will culminate with a day for you to conduct in-person meetings with your elected officials in Congress, making your voice heard on Capitol Hill. You won’t want to miss a minute of this program.

This is a member-only event. Be sure to register by Friday, February 28 to receive a discounted rate. Don't delay, register today! 

West Coast Lumber & Building Material Association Launches “Lumber Helping Lumber” In Response to Southern California Fires

The West Coast Lumber & Building Material Association (WCLBMA), a Federated Association Partner of NLBMDA representing the California region, has launched a fundraising campaign to support those in the industry affected by the Southern California fires that blazed across Los Angeles last week. “Lumber Helping Lumber” is a short-term pass-through process designed to provide direct financial support for urgent needs such as food, temporary housing, and essential supplies. They are working closely with our members to identify those who require assistance. 

“NLBMDA joins with the entire country in expressing our thoughts and heartfelt prayers to those throughout Southern California experiencing the devastating impacts of these unrelenting wildfires,” said NLBMDA President & CEO Jonathan Paine. “It is being reported that over 9,000 structures have been damaged or destroyed, and tragically there have been at least 10 fatalities. We salute the brave first responders and firefighters who have been battling the fires around the clock for days doing everything they can to protect residents and gain control of the unmerciful fires. There will be time to evaluate the impact of the Los Angeles wildfires but for now our focus is with all those being impacted and for everyone’s safety.”

Click here to donate to the campaign.

Freddie Mac Reports Fixed Mortgage Rates Continue To Increase 

Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS) on January 16^th. The survey shows that the 30-year fixed-rate mortgage (FRM) averaged 7.04 percent, up from last week when it averaged 6.93 percent. The 15-year FRM averaged 6.27 percent, up from last week when it averaged 6.14 percent.

“Mortgage rates ticked up for the fifth consecutive week and crossed seven percent for the first time since May of 2024,” said Sam Khater, Freddie Mac’s Chief Economist. “The underlying strength of the economy is contributing to this increase in rates. Despite rising rates, Freddie Mac research highlights that consumers can save money if they shop for several different lender quotes.”

Joint Center For Housing Studies Projects “Modest Gains” For 2025 Home Remodeling Activity

The Joint Center For Housing Studies of Harvard University (JCHS) released its Leading Indicator of Remodeling Activity (LIRA) on January 16^th. The report notes that after a two year decline, homeowners are expected to increase year-over-year spending for home renovation and repair by 1.2 percent in 2025.

Carlos Martin, Director of the Remodeling Futures Program at JCHS, attributes this projected increase to “a solid labor market, rising home values, and continued improvement in existing home sales.”

Aggregate Housing Data Report Finds Positive Attitude Toward Homeownership, Deterred By Affordability

The Virginia Tech–USDA Forest Service Housing Commentary released its report for November 2024. The report found that the desire to own a house remains positive, but cite several barriers to entry, including mortgage interest rates and affordability; inflation; lot availability and building regulations; labor shortages; and increasing corporate, personal, and government debt.

The report examines housing data from a variety of sources, and results were mixed. On a month-over-month basis single-family starts and permits, total and multi-family permits, single-family completions, spending, and existing and new house sales were positive. Year-over-year, multi-family permits; completions, construction spending, and existing and new house sales were positive. The influence of mortgage rates is evident, as aggregate costs have decreased affordability, and the “lockin” effect have obfuscated sales.

President Trump Issues Executive Order Addressing Housing Affordability Crisis

President Trump has signed a Day 1 executive order entitled “Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis.” The executive order states its intended purpose is to tackle the housing affordability crisis and lower the regulatory costs for new construction homes. The order requires federal agencies to adopt measures which deliver emergency price relief to Americans through lowering the cost of housing and expanding the housing supply.

Additionally, the order would require agencies to eliminate, “unnecessary administrative expenses and rent-seeking practices that increase healthcare costs; eliminate counterproductive requirements that raise the cost of home appliances; create employment opportunities for American workers, including drawing discouraged workers into the labor force; and eliminate harmful, coercive “climate” policies that increase the costs of food and fuel.” As NAHB recently reported, the regulatory cost for new constructions has skyrocketed in recent years with regulations account for $93,870 of the cost of an average new single-family home.



The memorandum requires the Assistant to the President for Economic Policy to submit monthly reports to the President on the status of orders implementation. As of today, it is unclear what immediate steps will be taken by agencies to satisfy the goals of the order. 

Dockworkers and United States Maritime Alliance Announce Tentative Agreement on Six-Year Deal

Representatives for the International Longshoremen’s Association and U.S. Maritime Alliance have announced that a tentative agreement has been reached between parties thus avoiding a previously looming port strike which would have had devastating impacts on the US supply chain. As the two parties work to officially ratify the new six-year contract, both parties have agreed to extend the existing contract to avoid a disruption to port operations. 



NLBMDA was engaged throughout the entire contract negotiations process and joined coalition partners in submitting letters to all parties involved so that a timely agreement could be reached. The avoidance of a port strike is a major win for the LBM industry and ensures the continuous flow of goods to businesses throughout the United States. 

Bipartisan Wildfire Prevention Bill Introduced in Congress

Congressman Bruce Westerman (R-AK) alongside Rep. Scott Peters (D-CA) have reintroduced bipartisan legislation aimed at improving forestry management and wildfire resiliency for high-risk communities. The legislation was reintroduced in the wake of devastating wildfires which have spread throughout Southern California causing significant loss of life and property. NLBMDA strongly supports this bipartisan legislation and will engage with lawmakers on Capitol Hill to advocate for its successful passage and signage into law.



Among the many issues this bill addresses, the legislation creates a centralized, uniform application process for the various federal grants provided to communities to address wildfire risk. Additional details on the legislation, including a one-pager and section-by-section overview can be found on the House Natural Resources Committee website. 

Congressional Republicans Strategize Ways to Create Deficit-Neutral Tax Bill, Float 10 Percent Tarriff

With several key provisions of the 2017 Tax Cuts and Jobs Act expiring at the end of 2025, Republican leadership have promised an aggressive timeline to draft, pass, and sign into law a monumental tax bill which would extend many of these provisions. 



House Budget Committee Republicans have drafted a strategy document which identifies several options to offset the cost of the new bill. Among the many strategies floated, lawmakers have proposed potentially including a 10 percent across-the-board tariff on all imports. Lawmakers estimate the measure would provide over $1.9 trillion in cost savings over a ten-year period. 

Nominations Process Begins on Capitol Hill 

Last week the US Senate began the lengthy confirmation process for the over 1,200 political appointees which require Senate confirmation. President Trump has so far announced 105 nominees to serve in his administration. Hours after the inauguration, the Senate unanimously confirmed former Senator Marco Rubio to serve as Secretary of State. In the following days votes are expected to be scheduled to confirm other senior members of the President’s cabinet, including Pete Hegseth, President Trump’s nominee to serve as Secretary of Defense.



President Trump has signaled to senior Republican lawmakers his preference to conduct the confirmation process as quickly as possible so that that attention can be centered on advancing his ambitious legislative agenda. 

SALT Negotiations Heat Up in Washington

President Trump is in full negotiation mode with blue-state Republican lawmakers who have been fighting to increase the State and Local Tax (SALT) deduction. SALT Republicans met with Trump at Mar-a-Lago to work out the details of the proposal before he took office yesterday.

Currently, taxpayers may deduct up to $10,000 of property, sales, or income taxes already paid to state or local governments. SALT deductions reduce the tax burden for those who live in high-tax states such as New York, Connecticut, and California. The $10,000 cap was introduced in the Tax Cuts and Jobs Act of 2017 and will expire later this year, prompting SALT Republicans to aggressively push for its protection and expansion. 

NLBMDA supports legislation which reduces the federal tax burden for individuals who conduct business in areas with high state and local taxes. “Increasing the SALT deduction cap will have a positive impact for LBM dealers who operate in high-tax states” said NLBMDA President & CEO Jonathan Paine. “Expanding SALT relief will lower the cost of doing business and will help to alleviate an excessive tax burden faced by many in our industry.” 

For additional information, see our latest NLBMDA Member Alert on SALT negotiations.

Congress Passes Bipartisan Immigration Bill

As President Trump was preparing to take the oath of office, lawmakers were already at work moving forward legislation which would advance President Trump’s immigration reform agenda. Earlier this month, the House of Representatives passed the Laken Riley Act in a 264-159 bipartisan vote. The legislation is named after Laken Riley, a Georgia college student who was tragically killed by a Venezuelan migrant who had previously been arrested for shoplifting. The bill would mandate federal detention of immigrants without legal status who are accused of theft, burglary, shoplifting, or larceny. The legislation also empowers State AGs to challenge federal immigration law enforcement.

On Friday, the Senate voted to advance the Laken Riley Act following a 61-35 vote to end debate on the bill. Following the inauguration on Monday, the Senate reconvened and passed the bill on a 64-35 vote with 12 Democrats supporting the legislation. The House of Representatives is expected to vote on and pass the Senate version of the legislation this week where it will then arrive at the White House to be signed into law. 

Congressional Budget Office Releases 10 Year Outlook

Last week the Congressional Budget Office (CBO) projected that the federal budget deficit would hit $1.9 trillion in fiscal 2025. The CBO estimated that federal spending would total $7 trillion during the fiscal year, amounting to 23.3 percent of the country’s gross domestic product (GDP). 

The CBO report arrives against the backdrop of a jam-packed year for the newly sworn-in GOP-led Congress and a returning Trump administration, as Republicans set ambitious sights on passing the incoming president’s tax agenda. Currently estimates project that an extension of the current individual and small business tax rates could add over $4 trillion to the deficit over the next 10 years. This figure is a driving motivation for Congressional leaders are working to find offsets to include in the tax bill.



The CBO report can be found here.

199A Permanence Legislation Reintroduction Expected This Week

Recent reporting has signaled that Senator Daines (R-MT) and Rep. Smucker (R-PA) are expected to introduce the Main Street Tax Certainty Act of 2025. This legislation would make permanent the 20-perecent deduction for small-and family-owned businesses, known as the Section 199A deduction. The deduction allows eligible taxpayers to deduct up to 20 percent of their qualified business income (QBI), plus 20 percent of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP).

Section 199A, introduced by the Tax Cuts and Jobs Act of 2017, is scheduled to phase out after 2025. Last week the House Ways & Means Committee held a hearing focused on extending the provisions from the 2017 Tax Cuts & Jobs Act. Among the provisions discussed, 199A deduction permanence was a central discussion during the hearing with many lawmakers taking the opportunity to express support for the deduction’s extension.

NLBMDA Submits Comments on OSHA Heat Injury and Illness Prevention Proposed Rule

NLBMDA has submitted comments on OSHA’s Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings proposed rule. The standard would apply to all employers conducting outdoor and indoor work in all general industry, construction, maritime, and agriculture sectors where OSHA has jurisdiction, with some exceptions. It would be a programmatic standard that would require employers to create a plan to evaluate and control heat hazards in their workplace. It would more clearly set forth employer obligations and the measures necessary to effectively protect employees from hazardous heat.

NLBMDA also cosigned comments submitted by the Coalition for Workplace Safety (CWS). The CWS comments also expressed dissatisfaction with the rule as proposed and offered several recommendations to simplify the rulemaking.

OSHA Updates Recordkeeping Policies and Procedures Directive

The Occupational Safety and Health Administration (OSHA) has issued an updated directive on recordkeeping policies and procedures, reflecting the agency’s efforts to modernize the guidance governing workplace injury and illness reporting. The updated guidance can be found here. 

Boise Cascade appoints chief operating officer

Boise Cascade Company has appointed Jeff Strom to become its new chief operating officer, effective January 20, 2025. This new role will oversee the operations for the company’s Wood Products and Building Materials Distribution (BMD) divisions.

Beacon rebuffs QXO

In response to QXO's massive $11 billion acquisition bid, Beacon says it is rejecting the "unsolicited, non-binding proposal from QXO, Inc. to acquire all outstanding shares of the company for $124.25 per share in cash."

Kodiak acquires Minn.-based Kendell Lumber

Kodiak Building Partners has acquired Minnesota-based Kendell Lumber. This move brings together two respected Minnesota companies—Kendell Lumber and Simonson Lumber, both part of the Kodiak family—to enhance operations and drive efficiencies, Kodiak says.

Rodney Bullion Named LMC Northwest Regional Manager

LMC is pleased to announce the appointment of Rodney Bullion as its new Northwest Regional Manager, effective January 13, 2025. Bullion brings over three decades of comprehensive experience in the LBM industry to his new role.

A look inside Simpson Strong-Tie's technology approach

Helping to lead Simpson's charge into the wild frontier of cutting-edge technology is Chief Technology Officer Udit Mehta, who shared insights with HBSDealer on how the company aims to leverage tech tactics to achieve its aims moving forward. Read on for Mehta's take on AI, robots, 3D printing, productivity, convincing tech skeptics and much more.

BlueLinx and LP team up to expand distribution

BlueLinx Holdings Inc. and Louisiana-Pacific Corporation are expanded their distribution partnership. The expanded collaboration will include LP's Siding Solutions brands and prefinished solutions, namely LP SmartSide Trim & Siding and LP SmartSide ExpertFinish Trim & Siding, in the Central Region, specifically Monroe, Louisiana, and Little Rock, Arkansas. 

PLM Kicks off New Year with Leadership Moves, Promotions

Pennsylvania Lumbermens Mutual Insurance Company (PLM), the largest mutual insurer dedicated to wood-related businesses, today announces several leadership changes and promotions within the company’s executive staff. The changes are part of PLM’s strategy to enhance the organization’s profitability and growth and prepare for the future, while recognizing the changing complexity of the business of insurance.