September 15, 2025 • 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.

Shutdown Watch: Federal Government Funding Expires In 15 Days 

With Congress scheduled to be out of town next week, this week on Capitol Hill will offer key insights into whether lawmakers can reach a deal to keep the federal government funded ahead of the September 30th deadline. House Republicans are expected to release the text of a temporary funding bill that would extend government operations until November 20th, giving lawmakers seven weeks to pass a broader funding package. Senate Minority Leader Chuck Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY) have signaled that Democrats would not support a funding bill unless it includes protections for certain health-care provisions. Republicans will need at least some Democratic support to overcome the 60-vote Senate filibuster. 

A government shutdown would impact the construction industry and the broader economy, creating a political risk neither party is eager to take but could face if gridlock continues. Federally funded projects would likely encounter delays as funds would be prohibited from being dispersed. NLBMDA has remained closely engaged with the fiscal appropriations process, promoting in meetings with Congressional offices the importance of a full-year funding resolution that minimizes impacts on the residential construction sector and the economy overall. 

U.S. Supreme Court to Rule on Constitutionality of Trump Administration’s Tariffs

The Supreme Court has agreed to hear two major cases that will decide the legality of the Trump administration’s sweeping tariffs, setting the stage for a landmark ruling on presidential power. The key question is whether the 1977 International Emergency Economic Powers Act (IEEPA) authorizes the president to impose tariffs on nearly all imports through executive orders. he tariffs included additional duties on goods from Canada, China, and Mexico, as well as “reciprocal tariffs” of up to 50 percent on most other imports. Business groups have challenged the measures, arguing that IEEPA does not explicitly grant sweeping tariff authority. Lower courts have agreed, striking them down.

The White House has countered that tariffs are essential for national security and trade leverage. Oral arguments for both cases are scheduled for November 3rd. NLBMDA will closely monitor the outcome, which could have significant consequences for the LBM industry and the broader U.S. economy.

Russ Kathrein to Moderate Technology Panel at ProDealer 2025!

Join Russ Kathrein, VP of Lumber and Building Materials at Do It Best, to discuss how technology is changing the game. The "How Technology is Influencing and Transforming the Future of the Industry" session looks at how up-and-coming leaders are using tech to streamline operations, connect with customers, and grow their businesses. From digital tools to data-driven decisions, you’ll hear real examples of what’s working, what’s next, and how to keep up in a fast-moving landscape. Register for the ProDealer Industry Summit today!

Call for Silent Auction Donations at ProDealer 2025

Support NLBMDA’s Legislative Action Fund by donating to this year’s Silent Auction! Each contribution helps strengthen our advocacy efforts in Washington while giving members the chance to bid on exciting items. Half of this year's Silent Auction donations will go to the NLBMDA’s Legislative Action Fund, and the other half will go to the KLBMD Education Foundation. The Foundation, which was formally created in 1998 and the first awards were given out in 1999, was started with seed money from the Kentucky Lumber and Building Materials Association and has been sustained through the years by the proceeds of the KBMA Jack Congleton Cup and individual contributions. Since its inception, the Foundation has donated more than $150,000 to more than 100 students.

Popular donations in past years have included sports memorabilia, electronics, outdoor gear, cigars, jewelry, art, wine and spirits, and more. If you’d like to showcase your support and generosity, simply complete the donation form below and help make this year’s auction a success.

Personalized Entry-Level Driver Training Certification for NLBMDA Members

The National Lumber and Building Material Dealers Association (NLBMDA) has partnered with J.J. Keller & Associates, Inc. to offer members of the association an exclusive discount on certifying trainers in entry-level driver training (ELDT).

With J. J. Keller’s Safe & Smart® ELDT Certification Program, trainers will gain the skills and knowledge they need to train drivers to prevent accidents, avoid violations, reduce liability, and begin a safe career at your company. After completing this program, driver trainers will be prepared to effectively deliver J.J. Keller’s Safe & Smart® ELDT curriculum online, in the classroom, on the range and on the road. It’s the industry’s most hand-on, customizable trainer certification program, providing the flexibility to train your trainers when and how it works best for you. Not only is it ideal for new drivers, it’s also ideal for existing trainers who want to build their skills for the life of your drivers — and be able to continue coaching them the entire way.

Household Real Estate Asset Values Reach New High, NAHB Writes

The National Association of Home Builders (NAHB) released an analysis of household real estate assets, citing a rise to $49.3 trillion in the second quarter of 2025, according to the most recent release of U.S. Federal Reserve Z.1 Financial Accounts. The value rose by 2.7% from the first quarter and is 1.1% higher than a year ago. This measure of market value estimates the value of all owner-occupied real estate nationwide. The calculation combines both repeat-home sales data with estimates of additions to the housing stock, essentially measuring both price changes and the change in quantity of housing assets. This approach helps explain why household real estate wealth can continue to rise even as other measures may show a slowing in home price growth.

Real estate secured liabilities of households’ balance sheets, i.e. mortgages, home equity loans, and HELOCs, increased 0.8% over the second quarter to $13.5 trillion. This level is 2.8% higher compared to the second quarter of 2024.

Owners’ equity share of real estate assets was 72.6% in the second quarter, marking an increase in owners’ equity share from the first quarter. The share in the second quarter of 2024 was 73.0% and has been above 70% for 14 consecutive quarters, the longest stretch since the 1950s. Owners’ equity in real estate was $35.8 trillion in the second quarter.

Home Prices Decline in a Growing Number of Markets as Inventories Climb

The persistent affordability pressures and high interest rates, national home prices rose modestly through early 2025 before beginning to ease, with annual growth slowing to 2.2 percent in May and monthly declines for three consecutive months. Rising for-sale inventories have driven price declines in many Southern and Western markets—particularly Sunbelt metros like Cape Coral and several large Florida markets—while prices continue to climb where for-sale supply remains tight, especially across the Northeast and Midwest. Even as some markets cool, national prices are still about 57 percent higher than in 2019.

Today’s elevated prices, combined with higher borrowing costs, present a major barrier to homeownership that sidelines many would‑be and first‑time buyers. Inventories have increased as homes spend more time on the market, which could create buying opportunities and more moderating prices in some areas, but with prices already so high, substantial affordability challenges are likely to persist.

National Association of Realtors Releases August 2025 Hottest Housing Markets

Springfield, MA, topped Realtor.com’s Market Hotness list for the fourth consecutive month in August as New England and Midwest metros again dominated the rankings, with the month’s 20 hottest markets concentrated largely in those regions. National prices were flat overall, but the hottest markets saw average price gains of 3.6 percent as strong buyer demand pushed views per listing and sped sales; Springfield attracted 3.2 times the national views per property and listings moved roughly a month faster, with a median list price of $355,000. Kansas City posted the largest year‑over‑year jump among big metros, rising 50 spots, while the 40 largest U.S. metros cooled on average, drawing only modestly more views and seeing a 1.2 percent price decline.



Affordability drove buyer interest in smaller, lower‑priced metros: 16 of the 20 hottest markets had medians below the national level, seven were under $300,000, and many Midwest markets led the most affordable list. High mortgage rates continue to strain budgets, but buyers stretch dollars by targeting these more affordable, fast‑moving markets where homes sell 20–30 days quicker and attract more than twice the views of the national average. Regional divergence persists: constrained inventory in parts of the Northeast and Midwest still favors sellers, while cooling demand has shifted leverage toward buyers in other areas; a recent dip in mortgage rates could bring additional buyers back and unlock more supply.

NLBMDA Submits Priorities for Congress’ Next Infrastructure Bill 

Last week, NLBMDA formally submitted written comments in response to a Request for Information filed by the U.S. Department of Transportation (DOT) to receive stakeholder feedback as Congress works to develop the next infrastructure bill. Congress’ last infrastructure bill, the 2021 Infrastructure Investment and Jobs Act (IIJA; “Bipartisan Infrastructure Law”), authorized 5-years’ worth of investment into our nations surface infrastructure. NLBMDA letter recommends Congress to address the truck driver shortage, invest in workforce programs, modernize truck weight limits, and strengthen rail and freight networks to improve the delivery and efficiency of building materials nationwide. 

Learn more about NLBMDA’s transportation priorities here.

Treasury Department to Delete Small Business Beneficial Ownership Information Data 

The Treasury Department has confirmed it will begin removing beneficial ownership information (BOI) collected from small businesses no longer subject to reporting under the Corporate Transparency Act (CTA). Andrea Gacki, Director of the Financial Crimes Enforcement Network (FinCEN), told lawmakers last week that the agency will delete all data “no longer legally required to be filed” and expects the process to be completed later this year. This action follows a major regulatory victory earlier this year when NLBMDA and coalition partners successfully revised CTA rules, eliminating BOI filing requirements for nearly 33 million small businesses, including LBM dealers. 

Momentum continues to build in Congress, with nearly 90 lawmakers urging FinCEN to finalize a rule that permanently exempts small businesses and ensures previously collected BOI data is destroyed. Lawmakers emphasized that the CTA wrongly places small family-owned businesses, those with fewer than 20 employees and less than $5 million in revenue, in the same category as criminal actors. The legality of the CTA remains under review in federal courts, and Rep. Warren Davidson (R-OH) is advancing legislation to permanently repeal the law. NLBMDA will continue monitoring developments and keep members informed. 

House Agriculture Committee Holds Hearing on Promoting Forest Health and Resiliency 

Last week At a House Agriculture Committee Forestry Subcommittee hearing, Chairman Doug LaMalfa (R-CA) and witnesses underscored the steep decline in U.S. timber harvests, down 75% since over the last few decades, which has left mills shuttered and rural economies strained. Scott Dane, Executive Director of the American Loggers Council, testified that California alone has dropped from 150 mills to just 27, warning that without reliable timber supply, several downstream consequences would follow, including a lack of proactive forest management. Witnesses emphasized that sawmills are key partners in wildfire mitigation and forest restoration, but they need consistent log flows to survive. 

Trade and policy challenges also drew attention. While U.S. mills run at only 72% capacity, imports now supply about 30% of domestic lumber demand. Dane and others pointed to the Fix Our Forests Act as a path to accelerate harvests and streamline regulatory procedures handing active management. NLBMDA continues to support FOFA, which was passed in the House of Representatives earlier this year and remains a pending item in the Senate. During the hearing, lawmakers from both parties agreed that long term predictability, mill infrastructure investment, and workforce development are essential not just for lumber industry, but also for keeping forests healthy and communities resilient. The full hearing can be viewed here.  

Federal Trade Commission Pauses Non-Compete Litigation  

On September 5, 2025, the Federal Trade Commission (FTC) withdrew its appeals of federal court rulings in Texas and Florida that blocked the agency’s nationwide rule banning nearly all noncompete agreements. The decision ends the FTC’s defense of the sweeping rule adopted in April 2024 under the Biden Administration. NLBMDA opposed the FTC’s final 2024 rule and submitted comments in April 2023 warning that an outright ban would harm small, family-owned lumber and building material dealers. NLBMDA and the larger business community argued that noncompetes help protect trade secrets, encourage investment in workforce training, and should remain regulated by states rather than federal mandate.  

Trump Administration Signals Overtime Rulemaking as Low Priority 

The US Labor Department (DOL) has signaled that new overtime pay regulations will be on the backburner, indicating the Trump administration does not plan to act quickly on the issue. DOL re-released its Spring 2025 regulatory agenda last week after briefly publishing and removing it in August. The move comes as multiple lawsuits over the Biden-era overtime rule remain pending in federal court. That rule, which would have broadly refined overtime pay eligibility, was struck down by two federal courts last year, with appeals still before the Fifth Circuit. 

The administration said it is “reviewing the 2024 rule and determining how to proceed,” but offered no target date for a new proposal. Earlier this month, the White House re-released its broader regulatory agenda, highlighting areas where it plans to diverge from the previous administration. Earlier this year the Trump administration withdrew the federal government’s appeal in the case challenging the legality of the rulemaking, effectively ending the defense of the policy and underscoring that overtime reform is not a near-term priority. 

FBMA to Comp Dealers

Florida Building Material Alliance made a groundbreaking announcement during its recent annual expo, unveiling a new membership structure that allows retail dealers to join the association for free.

Effective immediately, LBM dealers with a brick-and-mortar location in Florida can be members without charge if they register on the FBMA website, are registered with SunBiz, have a website, and sell 51% or more to the public. FBMA will also offer dealers a paid level that carries additional benefits for $195 a year. 

One on One with the ‘Next Gen’

Adam Collins is leading S.W. Collins Company into the future as a part of the Maine-based prodealer's sixth generation. Adam's role at the company extends beyond his title of Store Manager. He handles Homeowner and Contractor Sales, as well as purchasing commodity inventory for the company.

As he explains above, the best part of his job he feels is coaching and mentoring employees and helping them find their passion in leadership and sales.

Collins will join a panel of young and future industry leaders during the 2025 ProDealer Industry Summit, coming to Louisville Oct. 8-10.

LMC Honors the Retirement of Vern Dando After 40+ Years of Dedicated Service

After more than four decades of exceptional leadership and dedication, Vern Dando, Vice President of Panels, Special Woods ＆ Logistics will be retiring from LMC. Throughout his remarkable tenure, he has been a driving force behind the company’s growth, leaving an indelible mark on the organization’s success and shaping its future trajectory. 

Vern joined LMC then known as ELMCO, in December 1979 as a Plywood Assistant. He was appointed Acting Plywood Department Manager in June 1982 and officially promoted to the role later that year in December. In December 1984, Vern advanced to Purchasing Manager, Panel Products, and in August 1998, he was named Vice President of Panels and Specialty Wood Products. In 2008, Logistics was added to his title, reflecting the significant growth of that function under Vern’s leadership. 

Weyerhaeuser completes sale of Canadian sawmill

Weyerhaeuser Company has completed the sale of its lumber mill in Princeton, British Columbia, to the Gorman Group. The transaction, which was announced in May, also includes Weyerhaeuser's associated British Columbia timber licenses, which will transfer separately. That transfer is expected to be completed over the coming months and is subject to customary closing conditions, including regulatory review.