September 29, 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.

Washington Enters Shutdown Week with No Funding Deal in Sight

Since returning earlier this month, Congress has been consumed by negotiations to keep the government funded, halting nearly all other legislative work. Funding is set to expire tomorrow at midnight, and no agreement has yet emerged between Republicans and Democrats. Today, President Trump will meet at the White House with Senate Minority Leader Chuck Schumer (D-NY), House Minority Leader Hakeem Jeffries (D-NY), Speaker Mike Johnson (R-LA), and Senate Majority Leader John Thune (R-SD) in a last-minute effort to break the stalemate.

On September 19, the House narrowly approved a temporary funding bill, 217-212, to extend government operations through November 21, 2025, buying appropriators seven additional weeks to negotiate full-year spending. The measure failed in the Senate, where Democrats have continued to call for any funding bill to include an extension of expiring tax credits created under the Affordable Care Act. The following week, with both chambers in recess, the impasse deepened. Over the past five decades, there have been 21 federal shutdowns, the most recent in 2018, when a divided Congress left the government unfunded for a record 35 days.

As we have noted in previous newsletters, the impacts of a shutdown extend far beyond Washington. In addition to stalling NLBMDA’s legislative priorities, a prolonged funding lapse could also delay federally backed construction projects across the country. NLBMDA continues to closely monitor Congressional negotiations and reaffirms our call for lawmakers to reach a long-term funding agreement ahead of Tuesday’s midnight deadline.

White House Announces New Tariffs on Cabinets and Household Furnishings

Last Thursday in an online statement, President Trump announced that the United States would begin imposing new tariffs, “on all Kitchen Cabinets, Bathroom Vanities, and associated products, starting October 1st, 2025”. The President announced the tariff rate would be set at 50% for all imported kitchen cabinets, bathroom vanities, and other products designated by the United States. In addition, the White House announced a 30% tariff on imported upholstered furniture. The tariffs are being imposed under the Section 232 process, which provides the President authority to enact tariffs if it is determined the import of that product is a threat to national security. Details beyond the original announcement remain sparse with formal guidance still yet to be released by the White House. Last week the White House also announced a new 25% tariff on imported heavy trucks, starting October 1st. The White House argues the move is intended to protect domestic truck manufacturers such as Mack, Peterbilt, Kenworth, and Freightliner.

One Week Until the ProDealer Industry Summit

We're only one week away to the ProDealer Industry Summit, to be held in Louisville, Kentucky from October 8-10. This is an exclusive, live educational forum designed to promote the growth of lumber & building product dealers, distributors, wholesalers, and the manufacturers who supply them. Learn from LBM experts as they provide insights into the future of the industry during sessions such as:

A State of Play from Washington D.C.: An Insider Look Into the Political Landscape
Helping Dealers be Successful with Loyalty Programs
How Independent Dealers Win
NextGen of Emerging LBM Industry Leaders
How Technology is Influencing and Transforming the Next-Gen of the Industry
Insights and Perspectives from the Builder Community
Lessons from the Convenience Store Industry: How Independent LBM Dealers Can Compete & Win Against Industry Giants

It's not too late to join us! Register at the link below!

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.

Complete the Donation Form

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.

Request More Information

Disasters Reshape the Home Improvement Landscape

Weather- and climate-related disasters are becoming a powerful force in the home improvement market, driving a growing share of remodeling expenditures. According to the Improving America’s Housing 2025 report, disaster-related repairs accounted for 6% of national home improvement spending in 2022–2023, up from less than 4% two decades ago. With a record 28 billion-dollar disasters in 2023 alone, homeowners are spending more than ever—averaging $23 billion annually in recent years—to restore damaged properties. Regional impacts vary widely, with events like Hurricane Sandy and Hurricane Ida causing dramatic spikes in repair spending in the Northeast and South.

Beyond immediate recovery, disasters often trigger prolonged remodeling activity due to delays in insurance payouts, funding access, and contractor availability. While hurricanes, tornadoes, fires, and floods dominate headlines, smaller-scale events like hailstorms and windstorms now account for nearly half of all disaster repair spending. As hazard exposure grows, so does the urgency for mitigation retrofits—yet affordability remains a barrier. With $34 billion in uninsured homeowner losses in 2023, federal programs like FEMA’s Individual Assistance and HUD’s CDBG-DR are vital lifelines. However, recent policy shifts, including the proposed cancellation of FEMA’s BRIC program, cast uncertainty over future support. As disasters intensify, the remodeling industry must adapt to meet rising demand while addressing deepening disparities in housing resilience.

4.0% Home Sales Report Increase in August, Says National Association of Realtors

Pending home sales in August saw a 4.0% increase from the previous month and rose 3.8% compared to the same time last year, according to the National Association of Realtors (NAR) Pending Home Sales Report. The month-over-month gains were driven primarily by strong activity in the Midwest, South, and West regions, while the Northeast experienced a slight decline. Year-over-year, all regions showed sales growth, highlighting a broad upswing in contract signings across the country.

The report also highlights that lower mortgage rates are enabling more buyers to enter the market, especially in the Midwest, where affordability remains high. NAR's confidence reflects this positive trend, with 19% of members expecting increased buyer traffic in the coming three months—up from 16% last month. Although seller traffic expectations dipped slightly, they remain higher than last year, suggesting a continued balance between buyers and sellers in the housing market.

Overall, these trends indicate growing momentum in pending home sales, supported by favorable financing conditions and steady buyer interest nationwide. The Pending Home Sales Index, a forward-looking indicator of sales based on contract signings, suggests that home sales activity remains on an upward trajectory, setting an optimistic tone for the remainder of the year.

Mortgage Rates Continue Downward Trend in September

Average mortgage rates in September trended lower as the bond market priced in expectations of rate cuts by the Federal Reserve. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.35%, 24 basis points (bps) lower than August. Meanwhile, the 15-year rate declined 21 bps to 5.50%. Despite the recent drop, rates remain higher than a year ago as last September saw the lowest levels in about two years. The 30-year rate is currently higher by 17 basis points (bps), and the 15-year rate is higher by 24 bps, year-over-year.

The 10-year Treasury yield, a key benchmark for long-term borrowing, averaged 4.14% in September – a 15 bps decrease from the previous month. Markets began pricing in rate cuts from the Fed at the start of the month, particularly after news that jobless claims rose while inflation remained modest. On September 17, the Federal Reserve announced a 25 bps cut to the federal funds rate, bringing the target range to 4.00% – 4.25%.

Falling mortgage rates have already shown an impact on housing activity. New single-family home sales in August jumped 20.5% from the previous month, although we believe that estimate will be revised lower. Furthermore, according to the latest Mortgage Bankers Association (MBA) report, mortgage application activity strengthened, with refinancing applications rising and purchase applications remaining solid.

USDA Awards $23m in Grants Toward Timber Production

The U.S. Department of Agriculture’s Forest Service is investing more than $23 million to help 35 grant recipients remove and transport an estimated 1.1 million tons of low-value trees and woody debris from national forests to processing facilities.

The grants, delivered through the agency’s Hazardous Fuels Transportation Assistance Program, will fund 65 projects across the lower 48 states. The program is designed to help businesses, nonprofits, and state, local, and tribal governments make use of trees, downed vegetation, and other hazardous fuels that would otherwise go to waste or fuel wildfires. The USDA says these sorts of trees and woody debris, often too low in value to cover transportation costs, can be transformed from a wildfire hazard to valuable products and a source of energy.

Trump Administration Files Opening Brief in Supreme Court Tariff Case

This month the Trump Administration filed its opening brief in a high-profile Supreme Court case set to determine if the President has the authority to issue tariffs under the International Emergency Economic Powers Act (IEEPA). The White House has used IEEPA to justify its use of sweeping reciprocal tariffs and elevated tariffs on Mexico, Canada, and China due to an alleged failure to curb the import of fentanyl into the U.S. In the Supreme Court filing, the government argues that IEEPA authorizes the President to impose tariffs during declared national emergencies. It explains that regulating importation has always included tariffs, which have been a traditional tool of trade policy since the nation’s founding.

The brief criticizes lower court rulings that struck down the tariffs, noting that courts have long upheld presidential power to adjust trade measures. In its letter the administration rejects the view that IEEPA requires explicit mention of tariffs or duties and emphasizes that Congress intentionally wrote the statute broadly to allow the President flexibility in responding to foreign threats. On policy grounds, the administration highlights that the tariffs have produced new trade deals, prompted trillions in foreign investment, reduced the federal deficit, and enhanced U.S. leverage in global negotiations. Revoking the President’s authority, it warns, would undermine national security and risk severe economic harm. Plaintiffs in the case, Trump v. V.O.S. Selections will have until October 20th to file their opening brief in the legal case. Oral arguments are expected to begin in November and NLBMDA will be closely monitoring new developments in the case.

Fed Announces First Rates Cut of 2025

Earlier this month at its September meeting, the Federal Reserve’s Board of Governors, led by Chair Jerome Powell, voted to lower the federal funds rate by 25 basis points, marking the central bank’s first rate cut of 2025. The decision was highly anticipated in Washington and reflects growing concern over slowing economic conditions, particularly in the labor market and housing sector.

The August jobs report underscored the slowdown. The U.S. economy added just 22,000 jobs in August, with declines seen in several areas linked to the LBM industry, including residential construction and logging. According to the National Association of Home Builders, housing starts dropped 8.5 percent in August to a seasonally adjusted annual rate of 1.31 million units, while the NAHB Housing Market Index for single-family homes held steady at 32, a level indicating that more builders view conditions as poor rather than good.

The Fed’s move is expected to ripple across the economy, especially through the residential construction sector. This month’s rate adjustment is expected to ease borrowing costs for builders and developers by reducing interest rates on construction loans, land acquisition financing, and other investments tied to residential construction. Mortgage rates are also beginning to soften, with the average 30-year fixed rate declining to roughly 6.35 percent, its lowest level in nearly a year. If sustained, lower mortgage rates could improve affordability and help revive homebuyer demand.

Sens. John Hickenlooper, John Curtis, Alex Padilla and Tim Sheehy Renew Push to Pass NLBMDA Support Fix Our Forests Act in Senate

Senator John Hickenlooper’s Fix Our Forests Act continues to attract broad support from forest-connected industries and leaders on Capitol Hill as the Senate works to advance the bipartisan forestry management legislation which passed the U.S. House of Representatives earlier this year. Co-led with Senators John Curtis, Alex Padilla, and Tim Sheehy, the bill aims to reduce wildfire risks through improved forest management, streamlined project approvals, and expanded collaboration among federal, state, tribal, and local partners. In a press release last week, the Senate bill leads restated the broad support for the legislation and renewed the call to pass the legislation in advance of this years’ wildfire season.

NLBMDA has supported the legislation since it was first introduced by Rep. Bruce Westerman and Rep. Scott Peters in the House of Representatives. In April, Fix our Forest Act was one of the several issues NLBMDA members met with members of Congress and their staff to discuss. Provisions include creation of a Wildfire Intelligence Center to strengthen interagency coordination, a Community Wildfire Risk Reduction Program to support fire-resistant development and expanded reforestation initiatives. NLBMDA will continue to meet with Senate offices to advocate for a final vote on the legislation so that it can be signed into law allowing more resources to be directed to mitigating potential wildfires.

U.S. Formally Begins Joint Review of U.S.-Mexico-Canada Agreement

Earlier this month the Office of the U.S. Trade Representative (USTR) announced a public consultation process in advance of the forthcoming joint review of the USMCA trade agreement next summer. USTR is seeking public comments on the following topics:

Any aspect of the operation or implementation of the USMCA;
Any issues of compliance with the Agreement;
Recommendations for specific actions that USTR should propose ahead of the Joint Review;
Factors affecting the investment climate in North America and in the territories of each Party, as well as the effectiveness of the USMCA in promoting investment that strengthens U.S. competitiveness, productivity, and technological leadership; and
Strategies for strengthening North American economic security and competitiveness, including collaborative work under the Competitiveness Committee, and cooperation on issues related to non-market policies and practices of other countries.

Comments are due by November 3rd 2025. NLBMDA is planning on drafting comments representing the perspective of the LBM industry. Any LBM dealers interested in submitting opinions on the topic are encouraged to reach out to NLBMDA’s Government Affairs Coordinator Matthew Delaney at mdelaney@dealer.org

OSHA Nominee Nears Senate Confirmation, Extends Heat-Rule Comment Period

The nominee to lead the Department of Labor’s Occupational Safety and Health Administration, David Keeling, may finally receive Senate confirmation this week as Senate Majority Leader John Thune seeks to fast track more than 100 political appointees awaiting Senate confirmation. Known as an executive resolution, the expedited procedure allows the Senate to confirm nominees en bloc avoiding a series of timely votes. Awaiting Keeling at OSHA are several pending rulemakings including OSHA’s Heat Illness and Prevention in Outdoor and Indoor Work Settings Rulemaking. Earlier this month OSHA extended its comment period until October 30, 2025. The new delay means OSHA is unlikely to promulgate a final rule before the end of this year especially as new leadership seeks to conduct its own review of rulemakings initiated under the Biden administration.

LMC’s Leadership Summit Takes Business Beyond Ordinary

LMC dealers gathered in Denver, CO for the 2025 LMC Leadership Summit, where they spent three days embracing innovation through immersive education, practical tools, fresh perspectives, and lasting connections.

"The Leadership Summit is where vision meets action,” said Paul Thorne, Vice President of Stockholder Relations at LMC. “We explore what it means to build 'Business Beyond Ordinary' through bold ideas, authentic leadership, and a culture that turns values into impact." The Leadership Summit guided leaders through the “learning journey” which began with the a pivotal element impacting all sectors of the LBM industry: technology, Tim Costello, Co-Founder of Built for the Future, showed dealers how technology will transform construction over the next decade. His presentation covered emerging technologies already entering the LBM industry and what LMC dealers need to know to stay competitive.

Weyerhaeuser recently sold more than 3,000 acres in Multnomah County, Oregon, to the Trust for Public Land, which transferred the parcel to Oregon State University. But it was no ordinary land sale. It was a landmark conservation deal 10 years in the making that’s expected to have positive ripple effects for decades to come.

Now called the Tualatin Mountain Forest, the site is a rare gem — not only is it a working forest with sweeping views of downtown Portland and easy access for local schools and community groups, but it also has a well-loved mountain biking trail system.

“Conserving and opening access to the Tualatin Mountain Forest is an investment in the health and well-being of communities across the Portland metro area, for those here now, and for future generations," Kristin Kovalik, Oregon Program Director for Trust for Public Land, said in a press release. “We're deeply grateful for the collaboration between partners, which will help ensure that everyone can connect with the outdoors and experience the benefits of nearby nature.”

Boise Cascade Raises More than $423,000 for St. Jude Children’s Research Hospital–Surpasses Goal by Over $150,000

Boise Cascade Company (Boise Cascade) (NYSE: BCC) recently announced the results of its companywide philanthropic campaign benefiting St. Jude Children’s Research Hospital. The company raised $423,128.56, surpassing its original goal by over $150,000.

The month-long campaign was marked by grassroots efforts across Boise Cascade’s 60+ locations in the U.S. and Canada. Every dollar raised will support the mission of St. Jude: Finding cures. Saving children.

“Our people showed up in the most incredible way and I am proud beyond words,” said Jeff Strom, Boise Cascade’s Chief Operating Officer. “This isn’t just a fundraising campaign; it is a reflection of who we are. I am deeply grateful and moved by the outpouring of support from our associates, vendors, suppliers, and customers who gave from their own pocketbooks to support this campaign and help us do something truly extraordinary together.”

ECI Launches MobileTech AI Assist, The First Out-of-the-Box AI-Powered Service Tool for Office Technology

ECI Software Solutions (ECI), a global provider of cloud-based business management software and services, today announced the early access release of AI Assist for Mobile Tech, an AI-powered service call resolution solution built for the office technology industry. Embedded directly in the MobileTech mobile app, AI Assist enables service organizations to resolve equipment issues faster, more accurately, and at lower cost – addressing key challenges such as declining first-time fix rates, rising labor costs, and widening technician skills gaps. Unlike tools that rely on knowledge bases, content uploads, or technician prompts, AI Assist automatically analyzes service ticket data to deliver step-by-step workflows that speed resolution and increase first-time fix rates.

“Field service technicians in office technology have long relied on manual troubleshooting, searching documentation, and knowledge sharing to resolve equipment issues,” said Laryssa Alexander, President of the Field Service Division at ECI Software Solutions. “With AI Assist for MobileTech, we’re giving technicians a practical AI solution, transforming a traditionally manual process into a smarter, faster, and more reliable experience. This launch represents a major step forward in our mission to harness modern technology to solve everyday challenges for dealers.”