September 21, 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.

New House Bill Would Create Tariff Exclusion Process for Homebuilding Materials

Last week, Rep. Nanette Barragán introduced the Housing Tariff Exclusion Act (H.R. 10416), establishing a House companion to legislation introduced earlier this year by Sens. Jacky Rosen and Chris Coons. Barragán introduced the bill alongside Reps. Donald Norcross (NJ-1) and Mary Gay Scanlon (PA-5). NLBMDA worked with Barragán’s office in recent weeks to advance a House companion as NLBMDA continued to hear from LBM dealers about higher costs, sourcing challenges and product availability pressures stemming from recent trade actions.

The legislation would establish a Department of Commerce process allowing U.S. businesses and trade associations to request tariff exclusions for products used in residential construction, including an expedited process for designated critical homebuilding products. The measure is intended to provide greater certainty across the residential construction supply chain and limit tariff-related cost pressures that can make it more difficult to expand housing supply. NLBMDA will continue working with lawmakers in both chambers to build support for the legislation and pursue policies that promote greater trade stability, reliable access to building materials and improved housing affordability.

NLBMDA Attends U.S. Chamber Housing Summit

Last week, NLBMDA attended the U.S. Chamber of Commerce’s 2026 Building for Growth Housing Summit on September 14 in Washington, D.C., which brought together business leaders, policymakers and housing experts to discuss efforts to address the nation’s housing shortage. Discussions focused on implementation of the recently enacted 21st Century ROAD to Housing Act, reducing regulatory barriers to new construction, expanding access to capital, strengthening the housing workforce and improving resilience and infrastructure. House Financial Services Committee Chairman French Hill (R-AR), Housing and Insurance Subcommittee Chairman Mike Flood (R-NE) and Ranking Member Emanuel Cleaver (D-MO) were among the lawmakers participating in discussions on the federal housing policy landscape. The summit also highlighted the connection between housing availability, workforce recruitment and broader economic growth. NLBMDA’s participation comes as the NLBMDA works with policymakers and industry partners to support increased housing supply and address cost and regulatory pressures affecting residential construction.

Time's Running Out! Register for the ProDealer Industry Summit Today!

ProDealer Industry Summit is an exclusive, live educational forum designed to promote the growth of lumber & building product dealers, distributors, wholesalers, and the manufacturers who supply them. LBM dealers will benefit from sharing insights and best practices from industry leaders. Check out what's in store:

Networking Reception

Join us for a lively networking reception at a local Chicago venue to be revealed soon. Connect with industry peers in a relaxed setting and kick off the event with great conversations.

Speakers & Panels

Experience impactful speakers and dynamic panels that address today’s most relevant industry topics. Walk away with insightful takeaways you can immediately apply to your business.

ProDealer Awards Dinner

Celebrate excellence at the ProDealer Awards Dinner, where we honor this year’s Independent and ProDealer of the Year recipients. Enjoy an evening of recognition, inspiration, and industry camaraderie.

Next-Gen Breakfast

Our Next-Gen Breakfast spotlights the rising leaders who are shaping the future of the industry. Hear their perspectives and discover what we can learn from the next generation’s innovative approach.

Call for Silent Auction Donations at ProDealer 2026

Support NLBMDA 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 a charity to support the LBM Community.

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.

THIS WEEK: NLBMDA Webinar Series: State of Small Business and a Main Street Outlook 

Join us this Wednesday, September 23, at 2:00 pm Eastern for an informative discussion with Tom Sullivan, Senior Vice President of Small Business Policy at the U.S. Chamber of Commerce, as he provides an update on the state of small business and the outlook for Main Street. 

As a trade association member of the U.S. Chamber, NLBMDA is pleased to offer an opportunity to hear directly from Sullivan as he walks through the latest findings from the U.S. Chamber Small Business Index. Conducted quarterly, the Index tracks how small business owners view the health of their businesses, the economy, and their expectations for hiring, investment, and growth.

He will also provide perspective on the evolving legislative and regulatory landscape and what it means for small businesses across the country. The conversation will also provide NLBMDA members with the U.S. Chamber’s perspective on the broader outlook for small businesses.

Single-Family Starts Rebound but Market Challenges Persist

Single-family housing starts rebounded in August, but production remains down 4.7% year-to-date as builders contend with rising construction costs, lot and labor shortages, and economic uncertainty.

Overall housing starts decreased 2.6% in August to a seasonally adjusted annual rate of 1.28 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

The August reading of 1.28 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts increased 7.6% to a 918,000 seasonally adjusted annual rate and are up 5.2% compared to August 2025. The multifamily sector, which includes apartment buildings and condos, decreased 21.7% to an annualized 357,000 pace and are down 14.6% compared to August 2025.

Elevated Rates Slow Home Sales as Buyer Demand Softens (Zillow August Market Report)

Home sales slipped 0.6% year over year in August and fell sharply from July. Mortgage rates holding above 6.5% — their highest level in a year — kept many buyers on the sidelines. Newly pending listings, a forward-looking measure of demand, fell 2.6% from a year ago, a sign that the slowdown could continue through the remainder of the year August's closed sales largely reflect contracts signed in July, when elevated rates were already discouraging many would-be buyers. The typical U.S. home value rose 1.3% from a year ago to $369,678, according to the Zillow Home Value Index, and the monthly mortgage payment on the typical home was 2% higher than last year. Rents are climbing, too, up 2.5% year over year to $1,948 nationwide, giving prospective buyers little relief on either side of the rent-versus-own equation. That annual rent growth figure is also reaccelerating, up from 2.3% last month and 2% a year ago, suggesting the rental market is absorbing some of the demand that has shifted away from the for-sale market.

Inventory continues to offer a modest bright spot, with 1.41 million homes for sale nationwide, up 3% from a year ago. But new listings fell 7.9% from July, and the share of listings with a price cut edged up to 26.3% — half a percentage point above last year — a sign that sellers are still having to adjust expectations to meet the market. The for-sale housing market took a step back in August, with mortgage rates above 6.5% as the primary culprit. The combination of weak sales and even weaker pending sales points to a soft close to 2026. While more homes are for sale than a year ago, many households will likely stay on the sidelines until rates ease, as renting remains the more affordable option.

NLBMDA Joins Merchants in Opposing Proposed Visa-Mastercard Swipe Fee Settlement

Earlier this month, NLBMDA joined nearly 1,000 businesses and trade associations in urging a federal court to reject a proposed settlement in the long-running antitrust litigation over Visa and Mastercard credit card swipe fees. In a letter filed with U.S. District Judge Brian Cogan, the 978 signatories argued that the agreement would provide insufficient and temporary relief for merchants while broadly limiting their ability to pursue future legal challenges. The proposed settlement would reduce Visa and Mastercard’s combined system-wide average credit card interchange rate by 10 basis points for five years, cap standard consumer credit card interchange rates at 1.25 percent, and provide merchants with additional flexibility to reject certain premium cards, surcharge credit card transactions and form merchant buying groups to negotiate with the networks. NLBMDA and other merchant groups argue that these changes do not adequately address the underlying cost and competition concerns surrounding swipe fees, while the settlement would restrict class members from seeking certain injunctive or equitable relief over covered practices for an extended period. The court granted preliminary approval of the agreement in June and has scheduled a fairness hearing for November 16.

The filing comes amid renewed attention in Washington to credit card swipe

fees and the Credit Card Competition Act. During remarks at the Republican midterm convention in Dallas on September 9, President Trump again called for reducing swipe fees, marking his third public expression of support for swipe fee reform this year. Vice President JD Vance also addressed the issue in September while appearing at an event with Sen. Roger Marshall (R-KS), the lead Republican sponsor of the Credit Card Competition Act. Vance, who cosponsored the legislation while serving in the Senate, referenced his previous work with Marshall on the issue and expressed support for efforts to address swipe fees. NLBMDA supports the bipartisan Credit Card Competition Act, which would require the largest credit card-issuing banks to enable transactions to be routed over at least two unaffiliated payment networks, creating additional network options for merchants.

House Departs Washington as Senate Continues September Work

Congress returned to Washington this month with a shortened legislative calendar and government funding at the top of the agenda. The House on September 1 approved a continuing resolution (CR) extending federal funding through December 11, clearing the measure 370-48 after it previously passed the Senate 90-6. President Trump signed the measure into law September 2, avoiding a potential government shutdown at the end of the fiscal year and giving lawmakers additional time to complete work on fiscal year 2027 appropriations.

The House concluded its legislative work earlier than scheduled on September 16 and is not expected to return for votes until after the November midterm elections. The Senate plans to return September 22 and remain in session through early October, with nominations and other pending legislation on the agenda before senators begin their pre-election recess. Congress will then face a compressed post-election session ahead of the December 11 government funding deadline. Throughout the congressional recess, NLBMDA will continue engaging with congressional offices at the staff level to advance NLBMDA’s legislative and regulatory priorities.

Federal Reserve Increases Rates Following September Meeting

The Federal Reserve raised its benchmark interest rate by a quarter percentage point on September 16, bringing the target range for the federal funds rate to 3.75% to 4%. The Federal Open Market Committee approved the increase unanimously, citing inflation that remains above the Fed’s 2% target. The committee said economic activity continues to expand at a solid pace, while job gains have kept pace with growth in the workforce and the unemployment rate has changed little.

Updated economic projections released alongside the decision show Federal Reserve officials expect PCE inflation to average 3.7% in 2026, slightly above the 3.6% projected in June, before moderating in subsequent years. Interest-rate decisions remain particularly relevant to the housing and construction sectors because broader borrowing conditions can affect mortgage financing, business investment and overall housing demand. NLBMDA will continue to monitor economic conditions and Federal Reserve policy for potential impacts on LBM dealers and the residential construction market.

30-Year Mortgage Rate Approaches 7 Percent

The average 30-year fixed mortgage rate rose to 6.95% for the week ending September 17, up from 6.76% the previous week, according to Freddie Mac. The increase marked the fourth consecutive weekly rise and put the average rate at its highest level in more than a year. Other measures of mortgage rates moved above 7% during the week, reflecting continued movement in bond markets and broader economic conditions. A year ago, Freddie Mac’s 30-year fixed mortgage rate averaged 6.26%.

Higher borrowing costs continue to factor into housing market conditions and affordability. The Mortgage Bankers Association reported that mortgage applications declined 4.1% for the week ending September 11, including a 1% decline in purchase applications, as its measure of the average 30-year conforming mortgage rate increased to 6.97%. Mortgage rates remain an important indicator for the residential construction market, as financing costs can influence homebuyer demand and the pace of new home sales and construction.

SBA Proposes Changes to Small Business Size Standards

The U.S. Small Business Administration (SBA) is considering a proposed rule that would modernize and simplify the size standards used to determine which businesses qualify as small for federal programs and contracting opportunities. Published on August 20, the proposal would consolidate nearly 1,000 industry-specific classifications into 388 broader industry groups and industries and adjust employee- and receipts-based thresholds to better reflect current economic conditions and market structures. Current size standards will remain in effect while SBA considers public comments and completes the rulemaking process.

The SBA Office of Advocacy, an independent office within SBA that represents the interests of small businesses before federal policymakers, has expressed support for the proposal following outreach and consultation with small businesses and trade associations. Advocacy concurred with SBA’s economic analysis and estimated that approximately 4,000 to 6,000 current federal contractors could gain small-business status under the proposed standards, compared with approximately 56,000 firms currently participating in the federal small-business contracting marketplace. Advocacy characterized the proposal as a targeted adjustment to eligibility rather than a broad expansion of the small-business marketplace. SBA held public forums on the proposal on September 17 and 21 as part of the rulemaking process. NLBMDA will continue to follow the rulemaking process as it advances and share any relevant updates with members.

Brett Hanson, Co-Owner of Tri-State Building Center, has been elected Chairman of the BLD Connection Board of Directors

Brett Hanson, Co-Owner of Tri-State Building Center in Sisseton, South Dakota, has been elected Chairman of the BLD Connection Board of Directors for the 2026–2027 membership year. Hanson is the first South Dakota member to serve as chairman of the organization in more than 20 years. Hanson began his service with BLD Connection in 2013 as South Dakota Dealer Director. After completing a six-year term, he became BLD Connection’s representative to the National Lumber and Building Material Dealers Association, serving on the NLBMDA Board of Directors from 2019 through 2023. He joined the BLD Connection Executive Committee in 2023 and most recently served as 1st Vice Chairman. 

LMC announces New Director of Millwork, Josh Litzman

LMC is pleased to announce Josh Litzman as the Director of Millwork in the co-op’s building materials sector. In this role, Mr. Litzman will report directly to John Keeley.

Josh joins Team LMC with 20 years of experience in sales and purchasing in the Building Materials industry. His most recent experience was as the Director of Purchasing Inventory – Complimentary Products for Gypsum Management & Supply. Josh has a Bachelor’s Degree in Applied Economics and Management from Cornell University and a Master’s in Industrial Distribution from Texas A&M. Josh’s building materials experience and industry expertise will help drive growth in the Millwork business and for the cooperative as a whole.

Video Showcase: Guy C. Lee Building Materials

Smithfield, North Carolina-based Guy C. Lee Building Materials will accept the 2026 ProDealer of the Year Award during the upcoming ProDealer Industry Summit.

Simpson Strong-Tie Joins the Lowes Building Futures Skilled Trades Coalition to Help Strengthen America's Construction Workforce

Simpson Strong-Tie, the leader in engineered structural connectors and building solutions, announced it has joined the Building Futures Skilled Trades Coalition as a founding member, partnering with more than 75 organizations committed to helping train and develop one million people for skilled trades careers by 2035.

The coalition, launched by the Lowe's Foundation, brings together educators, businesses, workforce organizations and industry leaders to address one of America's most pressing workforce challenges. The United States could face as many as 2.1 million unfilled skilled trades positions by 2030, creating significant impacts across the construction and broader economy.

Six years after the Holiday Farm Fire, teamwork restores an Oregon forest in Weyerhauser's largest-ever reforestation effort

When the Holiday Farm fire swept across western Oregon during the historic Labor Day fires of September 2020, it transformed our Springfield tree farm almost overnight.



Fueled by hurricane-force east winds and exceptionally dry conditions, the fire raced across more than 170,000 acres, burning communities, closing highways and leaving behind a landscape of blackened ridges. Within Weyerhaeuser ownership, approximately 125,000 acres were impacted by the three Labor Day fires, including about 52,000 acres in Springfield that would ultimately require reforestation.