February 23, 2026 • View in browser

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

White House Announces 15% Global Tariff in Response to Supreme Court Ruling

At a press conference Friday, the Trump administration announced a new 15 percent global tariff following the Supreme Court’s decision to invalidate its earlier tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Those measures had been a central component of the White House’s trade strategy. In response to the Court’s ruling, the administration is now invoking Section 122 of the Trade Act of 1974, which authorizes the President to impose temporary import surcharges of up to 15 percent in cases involving a “large and serious balance-of-payments deficit.” Unlike the IEEPA-based tariffs, Section 122 actions are explicitly capped at 15 percent and may remain in effect for no more than 150 days unless Congress approves an extension.

According to the proclamation released by the White House, the new tariff will not stack on top of existing sector-specific duties. Softwood lumber imports currently subject to a 10 percent Section 232 tariff will be exempt, and U.S.-Mexico-Canada Agreement (USMCA)-compliant goods will continue to enter duty free. However, other building materials not already covered by a preexisting tariff could now face the 15 percent surcharge. Imported engineered wood products—including Oriented Strand Board (OSB), Cross-Laminated Timber (CLT), and related products—may be subject to the new duty, with an exclusion for USMCA-compliant imports from Canada and Mexico.

The White House has indicated that additional trade actions may be forthcoming as it seeks to reassert authorities constrained by the Supreme Court’s ruling. The new 15 percent tariff will take effect after midnight on February 24th. NLBMDA will continue to closely monitor these developments and evaluate their potential impact on the lumber and building materials industry.

U.S. House Passes Housing for the 21st Century Act, U.S. Senate Nearing Vote on ROAD to Housing Act

Earlier this month, the U.S. House of Representatives passed H.R. 6644, the Housing for the 21st Century Act, a bipartisan housing package designed to boost supply and improve affordability. The legislation cleared the House by a vote of 390–9. It now moves to the Senate, which is expected to consider S. 2651, the ROAD to Housing Act, the Senate’s housing package offering similar policy solutions aimed at increasing construction activity and lowering costs.

The Senate bill advanced out of the Banking Committee in July but has not yet received a floor vote. It was previously attached as an amendment to the annual defense authorization bill; however, the House rejected its inclusion, opting instead to draft and pass its own housing measure.

Given substantive differences between the two bills, the House and Senate are likely to enter into conference negotiations to reconcile the legislation. NLBMDA will continue working with both chambers to advance a final package that meaningfully reduces regulatory barriers and accelerates housing production.

Complete NLBMDA's Federal Policy Survey Today

NLBMDA’s advocacy efforts are strongest when they reflect the real priorities of our members. The NLBMDA Federal Policy Survey is designed to gauge your company’s advocacy needs and interests at the federal level.

Your input will help shape our legislative strategy, inform regulatory engagement, and ensure we are focused on the issues that matter most to the lumber and building material industry.

Your feedback is confidential and essential to strengthening our collective voice in Washington. Thank you for helping guide NLBMDA’s advocacy efforts.

Take the Survey!

NLBMDA Spring Meeting & Legislative Conference: Swipe Fee Session Highlight

As part of this year’s NLBMDA Spring Meeting & Legislative Conference, attendees will have the opportunity to hear directly from the congressional offices leading the effort to advance the Credit Card Competition Act (CCCA). This timely swipe fee session will feature senior legislative staff working on the front lines of this bipartisan reform effort, offering members a behind-the-scenes look at the strategy, political dynamics, and path forward for the bill.

The discussion will include insights from Stephanie Badger, Vice President of The Nickels Group, along with staff from the offices of Lance Gooden, Roger Marshall, and Richard Durbin, lawmakers who are central to advancing the CCCA in the House and Senate. Panelists will provide an update on where the legislation stands, how bipartisan support is being cultivated, and what hurdles remain in moving the bill through Congress.

For LBM dealers, swipe fees are not an abstract policy issue. With routine high-dollar transactions, interchange fees represent a significant and growing operating expense. This session will connect the policy debate in Washington to the real-world impact on LBM businesses and outline how coordinated advocacy can help build momentum for meaningful reform. Not registered? Take advantage of our early-bird discount, extended until Wednesday, February 25! Save $100 on full-priced registration!

Apply for Dealers to D.C. Advocacy Grant Program to Participate at NLBMDA's Annual Legislative Fly-In

NLBMDA has introduced Dealers to D.C., a new grant initiative aimed at boosting dealer participation at the 2026 Spring Meeting and Legislative Conference. The program offers ten $750 advocacy grants to help cover registration, travel, and lodging for LBM dealers—especially those who haven’t attended recently or represent underrepresented states. By broadening dealer involvement, NLBMDA strengthens its voice on Capitol Hill and ensures a wider range of industry perspectives are heard.

Participants will receive advocacy training, issue briefings, and hands‑on support from NLBMDA staff to prepare for effective meetings with lawmakers. Grant recipients will be announced ahead of the March 17–18, 2026 conference.

Apply Today!

Registration is now open for the ProDealer Industry Summit!

Registration is now open for the ProDealer Industry Summit, an exclusive live educational forum designed to advance the growth of lumber and building product dealers, distributors, wholesalers, and their supplier partners. The event will be held at The Westin Michigan Avenue in Chicago and is co-hosted by NLBMDA and HBSDealer.

The summit brings together leaders from across the LBM industry for education, peer collaboration, and strategic discussion focused on strengthening businesses in a competitive marketplace.

NAHB's 2026 Housing Outlook: Ongoing Challenges, Cautious Optimism and Incremental Gain

The housing market is expected to face continued headwinds in 2026, including economic policy uncertainty, a softening labor market, persistent labor shortages, and ongoing affordability challenges. NAHB economists noted that while builders are grappling with rising material and labor costs and elevated shelter inflation, modestly easing financial conditions should provide some relief. Mortgage rates have dipped to roughly 6.2% following recent mortgage-backed securities buybacks, and the Federal Reserve is projected to implement two rate cuts this year. Even so, experts caution that a sustained sub-6% mortgage rate environment may not arrive until 2027.

Given these conditions, the outlook is mixed. Single-family construction is expected to post only slight gains in 2026, while multifamily production continues to cool after its pandemic-era boom. The remodeling sector, however, remains a bright spot, with spending projected to rise as homeowners tap into accumulated equity to fund renovations and aging-in-place upgrades. At the same time, rising existing-home inventory is gradually shifting the market toward balance, helping moderate price growth and offering modest improvements in affordability.

Still, buyer sentiment remains cautious. Prospective homeowners are weighing policy uncertainty, job security, home prices, and insurance and maintenance costs. Economists emphasize that restoring confidence will depend on greater stability — in interest rates, employment conditions, public policy, and home prices — to encourage hesitant buyers to reenter the market.

Partial Government Shutdown Continues as Congress Returns to Washington

President Trump to Address Congress Tomorrow During State of the Union

Tomorrow, President Trump will deliver a State of the Union address to a joint session of Congress, providing an opportunity to outline his legislative agenda for the remainder of the 119th Congress. The speech will serve as an important signal of the administration’s policy priorities for the year ahead, particularly as Congress is expected to operate on a reduced legislative calendar in advance of the midterm elections this fall. With limited in-session days and competing demands on floor time, the President’s remarks may help clarify which issues the White House intends to prioritize and actively support.

NLBMDA will be closely monitoring any references to housing affordability and credit card swipe fee reform—two issues of significant importance to lumber and building material dealers. Last month, the President publicly endorsed the Credit Card Competition Act. A reaffirmation of that support before House and Senate lawmakers would provide meaningful momentum for the legislation as it advances in both chambers. The President is also expected to address proposals currently moving through Congress aimed at reducing regulatory barriers to new home construction and expanding housing supply. Clear executive support for these efforts could influence the legislative trajectory of bipartisan housing initiatives in the months ahead.

Supreme Court Invalidates IEEPA Tariffs; Other Trade Measures Remain in Place

The U.S. Supreme Court ruled 6–3 in Learning Resources, Inc. v. Trump that the Trump administration exceeded its authority in imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA). Writing for the majority, Chief Justice John Roberts held that IEEPA “does not authorize the President to impose tariffs,” rejecting the argument that the statute grants broad authority to levy duties. Over the past year, IEEPA tariffs became a central pillar of U.S. trade policy, at times reaching 145% on Chinese imports and applying to roughly 27% of all U.S. imports as of December 2025.

Importantly, the decision does not affect other trade measures currently in place, including Section 232 tariffs and existing antidumping and countervailing duties on products such as Canadian softwood lumber. NLBMDA has consistently urged policymakers to pursue a trade strategy grounded in predictability and long-term certainty to avoid supply chain disruption and added costs for LBM dealers. We will continue monitoring developments closely. For more details, read our full communication here.

House Energy & Commerce Committee Advances Legislation Repealing IRA Energy Efficiency Programs

The House Energy & Commerce Committee voted 25–21 to advance H.R. 4758, the Homeowner Energy Freedom Act, legislation that would repeal several energy efficiency and building code provisions enacted under the Inflation Reduction Act (IRA).

The bill specifically repeals three sections of the IRA:

Section 50122, which established a $4.275 billion rebate program for the purchase and installation of high-efficiency electric home appliances and equipment.
Section 50123, which created a $200 million grant program to support contractor training related to the installation of equipment funded under Section 50122.
Section 50131, which authorized $1 billion in grants to states and local governments to adopt and implement updated building energy codes aligned with more stringent efficiency standards.

Senator Tim Sheehy (R-MT) introduced a companion measure, S. 333, in the Senate earlier this year. The legislation is supported by the National Association of Home Builders, which has expressed concern that additional efficiency mandates, including incentives to adopt the 2021 International Energy Conservation Code, would make it more difficult and costly for home builders and developers to construct affordable housing. The legislation is scheduled to be considered before the House Committee on Rules later this week after which the legislation can proceed to a floor vote.

Bureau of Labor Statistics Releases National Census of Fatal Occupational Injuries in 2024

Last week, the U.S. Bureau of Labor Statistics reported 5,070 fatal work injuries in 2024, a 4 percent decline from 5,283 in 2023. The fatal injury rate fell to 3.3 deaths per 100,000 full-time equivalent workers, marking the second consecutive annual decrease. The overall drop was driven in part by a 16 percent decline in fatalities from exposure to harmful substances.

Construction and extraction occupations remained among the most dangerous, with 1,032 fatalities in 2024, second only to transportation and material moving occupations. Falls, slips, and trips continue to pose significant risks on job sites, accounting for 370 construction-related deaths, though that figure declined 7.5 percent from the previous year. Transportation incidents remained the leading cause of workplace fatalities overall, representing 38 percent of all deaths.

Remembering Austin Huskey

A tragic small-plane airplane accident claimed the life of 37-year-old Austin Huskey, the CEO of Huskey Building Supply of Franklin, Tennessee. Huskey represented the third-generation of family ownership of the business. He was widely considered a rising star in the LBM industry and an active participant in industry events. The plane crash occurred Feb. 13 near Steamboat Springs, Colorado. All four people on the small plane died.

The LMC Annual in Chicago is weeks away and the industry's top dealers prepare to gather for this unmissable event. LMC membership represents the strongest businesses in the LBM industry, and the Annual is where that strength compounds. This year's gathering provides LMC Dealers exactly what sets them apart from the rest: exclusive savings, direct access to hundreds of supplier partners, education to accelerate growth, and valuable prizes throughout the event. McCormick Place will be filled with the most successful dealers in the industry. At the LMC Annual from March 10-12 in Chicago, the connections made and insights gained create advantages that truly embody LMC's motto of Building Business Together.

LEARN MORE

QXO to Buy Kodiak Building Partners for $2.25 Billion

QXO, Inc. today announced it has entered into a definitive agreement to acquire Kodiak Building Partners (“Kodiak”) from Court Square Capital Partners for approximately $2.25 billion. The transaction is expected to be highly accretive to 2026 earnings and will expand QXO’s current addressable market to more than $200 billion.

The purchase price comprises $2.0 billion of cash and 13.2 million shares, with QXO retaining the right to repurchase these shares at $40 per share. The transaction is expected to close early in the second quarter of 2026, subject to the satisfaction of customary closing conditions.

Weyerhaeuser divests Va. timberlands

BTG Pactual Timberland Investment Group (BTG Pactual TIG) has acquired approximately 107,000 acres of Central Virginia timberlands from Seattle-based Weyerhaeuser Company.

The acquisition represents one of the largest recent timberland transactions in Virginia and brings the firm’s total U.S. portfolio to approximately 1.6 million acres under management. Weyerhaeuser, the nation's largest private timberland owner, says it owns or controls roughly 10.4 million acres of timberlands, primarily in the West, South and Northeast.

The property is Sustainable Forestry Initiative (SFI) certified, consisting primarily of loblolly pine.