January 26, 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.

President Trump Endorses NLBMDA Swipe Fee Bill, House & Senate Reintroduce

Since our last newsletter, support in Washington for swipe fee reform has gained significant tailwinds, with the Credit Card Competition Act (CCCA) receiving the endorsement of President Trump. Shortly following endorsement, Reps. Lance Gooden (R-TX) and Zoe Lofgren (D-CA) introduced the Credit Card Competition Act of 2026 (H.R. 7035), with Sens. Roger Marshall (R-KS) and Dick Durbin (D-NY) introducing a Senate version, S. 3623, that same day.

On Friday, NLBMDA cosigned a letter with nearly 350 merchant trade associations urging the Senate Agriculture Committee to include the CCCA as part of cryptocurrency marketplace legislation being considered in the committee this week. Our letter emphasized the growing need for swipe fee reform to support small to mid-sized retailers, who are disproportionately affected by rising credit and debit card fees, the second-highest operating cost for most merchants after labor. The amendment to the crypto bill, sponsored by Senators Marshall, Durbin, and Welch, mirrors the CCCA and would require large banks to enable cards to be processed over multiple networks, creating competition expected to save merchants and consumers an estimated $17 billion annually while preserving credit card rewards and network security.

NLBMDA is encouraging all members to contact their members of Congress and advocate for House and Senate lawmakers to cosponsor and support the legislation. You can find and contact your members of Congress here.

House Lawmakers Pass Funding Package, Includes Funding for HUD Housing Programs

Last week, the House passed a six-bill appropriations package that, if approved by the Senate, would fund all remaining federal agencies yet to be funded through the end of the fiscal year on September 30, 2026. Since returning to Congress earlier this month, completing work on the outstanding appropriations bills has been a top priority for lawmakers ahead of the January 30 funding deadline later this week.

Included in the most recent package is funding for is funding for the Department of Housing and Urban Development (HUD), with the bill providing approximately $77.3 billion for HUD programs, an increase of roughly $7.3 billion over FY25. Key rental and homelessness assistance programs received significant boosts, including funding to renew existing Tenant-Based Rental Assistance (TBRA) contracts, support for new Tenant Protection Vouchers (TPVs), and over $4.4 billion for Homeless Assistance Grants (HAG). Funding for the HOME Program, which supports the construction, buying, or rehabilitation of affordable housing units was maintained despite earlier attempts by the Administration and House Republicans to cut funding to the program.

Over the weekend, Senate Minority leader Chuck Schumer (D-NY) vowed to oppose a funding package that includes appropriations for the Department of Homeland Security, following the killing of a U.S. citizen by federal immigration officials in Minneapolis on Saturday. For now, Senate Republicans have rejected calls to remove DHS funding as part of the 6-bill package, raising the potential for a partial government shutdown at the end of the week. NLBMDA continues to follow appropriations developments closely and engages with congressional offices to ensure the interests of the building materials industry are represented throughout the process.

Early Bird Registration for the 2026 Spring Meeting & Legislative Conference is Now Open!

Registration is now open for NLBMDA's Spring Meeting and Legislative Conference to be held on March 17-18 in Washington, D.C. If you register by February 20, you can save $100 on full-priced registration!

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.

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!

Builder Sentiment Loses Ground at Start of 2026, Says NAHB

Builder confidence slipped to start the year, with the NAHB/Wells Fargo Housing Market Index falling two points to 37 in January. Affordability challenges continue to weigh on lower- and mid-range buyers as high home prices, elevated mortgage rates, and rising construction costs persist. While the upper end of the market remains relatively steady, builders report ongoing supply-side pressures, including labor and lot shortages and higher regulatory and material costs. Although mortgage rates recently dipped to 6.06%—their lowest level in three years—most survey responses were collected before the announcement that Fannie Mae and Freddie Mac would purchase $200 billion in mortgage‑backed securities to help ease rates.

Survey results highlight continued strain across the market: 40% of builders reported cutting prices in January, with average reductions rising to 6%, and 65% used sales incentives for the tenth straight month. All major HMI components declined, including future sales expectations, which fell below the breakeven threshold of 50 for the first time since September. Regional three‑month moving averages were mixed, with modest declines in the Northeast and South, stability in the Midwest, and a slight uptick in the West.

NAR Pending Home Sales Report Shows 9.3% Decrease in December

Pending home sales fell sharply in December, dropping 9.3% from November and 3% from a year earlier. All four regions saw month‑to‑month declines, while only the South posted a year‑over‑year increase, according to the National Association of REALTORS® Pending Home Sales Report.

NAR Chief Economist Lawrence Yun noted that December’s slowdown interrupts several months of improving contract activity and may signal a short‑term setback. He also cautioned that winter search behavior is harder to interpret due to holidays and weather.

Although closings rose in December, new listings did not, pushing inventory down to just 1.18 million homes — tied for the lowest level of 2025. Yun suggested that limited options may be discouraging buyers and contributing to weaker pending sales.

Zillow Expects Low but Steady Home Value Growth, Falling Mortgage Rates and Rising Incomes in 2026

Housing affordability remains a major concern for Americans, with 82% saying local housing costs are a problem. But a new Zillow outlook suggests conditions may gradually improve this year as moderating price growth, easing mortgage rates, and rising household incomes help more markets become attainable. Zillow expects 20 of the 50 largest metro areas to be affordable for typical buyers by late 2026 — the highest number in several years.

Affordability hit historic lows in 2023, when a typical mortgage consumed 38.2% of median income. That share has since fallen to 32.6%, the best level since 2022, and is projected to improve slightly by year‑end. Zillow anticipates modest 1.9% home‑price growth, mortgage rates hovering near 6%, and continued income gains — a combination the company calls a “small‑wins year” that supports both buyers and existing homeowners.

Even with these improvements, significant hurdles remain. A 20% down payment on a median‑priced home still exceeds $71,000, and monthly payments average about $2,337, only slightly below last year’s levels. Zillow notes that affordability gains will be slow and uneven, but the overall trend points toward a gradually more accessible housing market.

NLBMDA's 119th Congress Legislative Tracker

NLBMDA now offers a new legislative tracker highlighting the status of priority bills NLBMDA is actively supporting on Capitol Hill. The tracker will be updated regularly to reflect the progress of key legislation impacting the lumber and building material industry. Since our last newsletter, lawmakers have officially reintroduced the Credit Card Competition Act in both the House and Senate, this official reintroducing represents meaningful progress over the last few weeks to advance CCCA this Congress.

New Bill Introduced Establishing Federal Assistance Program for Timber Harvesters, Haulers, and Landowners

Last week, Rep. Rick W. Allen (GA-12) introduced H.R. 7195, the Timber Harvesters, Haulers, and Landowners Market Disruptions Relief Act, legislation aimed at providing temporary financial relief to forest product harvesting and hauling businesses impacted by major market disruptions. The bill would establish a targeted assistance program at the U.S. Department of Agriculture, administered through the Farm Service Agency, to support eligible operators facing challenges from mill closures, natural disasters, trade barriers, and potential declines in timber prices.

The legislation allows USDA to quickly declare a market disruption and deliver payments to eligible harvesters, haulers, and qualifying landowners to help cover essential operating costs. Initial payments could reach up to $20,000 per applicant, with additional assistance available if revenue losses persist. Funding for the program would come from existing antidumping and countervailing duties collected on Canadian softwood lumber imports, avoiding the need for new discretionary spending. NLBMDA has conducted outreach with Rep. Allen’s office to obtain further details and clarification regarding the legislation.

Commerce Department Issues Preliminary Countervailing Duties on Hardwood and Decorative Plywood from China, Indonesia, and Vietnam

On January 16, 2026, the U.S. Department of Commerce announced preliminary affirmative countervailing duty findings on hardwood and decorative plywood imports from China, Indonesia, and Vietnam. Commerce identified significant government subsidies in these countries, setting preliminary duty rates of 81.34% for China, 2.40% to 128.66% for Indonesia, and 4.37% to 26.75% for Vietnam. Following publication in the Federal Register, U.S. Customs and Border Protection will begin collecting duties, including on Chinese imports entered 90 days before the preliminary determination.

The investigation will continue in the coming months as Commerce examines additional subsidy programs and final determinations are expected in early May 2026. Parallel antidumping investigations are underway with preliminary rates expected in late February.

House Oversight Committee Holds Hearing on Housing Affordability

With housing remaining a top priority for lawmakers at the start of the year, the House Oversight and Government Reform Committee’s Economic Growth Subcommittee convened a hearing titled Housing Affordability: Saving the American Dream to examine the scale and underlying drivers of the nation’s housing affordability challenges. Members highlighted indicators such as low consumer confidence in the ability to purchase a home, the growing share of renters and homeowners spending 30 percent or more of their income on housing, and projections showing a multi-million-unit housing shortage that could widen over the next decade. Witnesses also discussed how post-pandemic interest rate shifts, inflationary pressures, and higher borrowing costs, combined with limited housing supply, have contributed to sustained price increases.

Testimony further outlined a range of factors influencing both the cost to build and the ability to buy a home, including zoning and land-use restrictions, lengthy permitting processes, and regulatory requirements affecting single-family and multifamily construction. Additional discussion focused on construction workforce constraints, material costs, and the growing impact of insurance and utility expenses on overall affordability. On Capitol Hill, NLBMDA continues to advance legislative efforts aimed at addressing several of the structural barriers limiting new housing construction and improving long-term housing affordability

NLBMDA Sends Letter to Treasury Department on CTA Rulemaking

Last week, NLBMDA joined more than 100 trade associations in sending a letter to the U.S. Department of the Treasury recommending immediate action to address ongoing privacy and cybersecurity risks related to the Corporate Transparency Act (CTA). While Treasury has narrowed the CTA’s scope, following direct advocacy from NLBMDA, so domestic businesses are no longer required to report, the letter urges the Department to finalize that exemption and purge beneficial ownership information already submitted by U.S. entities.

Before Treasury issued its new rulemaking, roughly 16 million domestic entities had complied with the reporting requirement, leaving owners’ personal data, including names, addresses, and identification numbers, stored in a FinCEN database. With multiple federal court challenges to the CTA still pending and no reporting obligation for U.S. businesses, the letter argues there is no legitimate justification for continued data retention. NLBMDA urged Treasury to act quickly to remove the data and provide certainty to affected businesses.

OSHA Cold Weather Resources

With much of the country digging out from a weekend of heavy snow and facing a prolonged period of subfreezing temperatures, NLBMDA would like to remind members of the resources available through the Occupational Safety and Health Administration (OSHA) to support winter weather safety in the workplace. Stay safe and stay warm!

Hancock Lumber hires GM

Maine-based Hancock Lumber has hired Rebecca McCrohan as General Manager of its Damariscotta location.

McCrohan brings over 15 years of retail management experience, most recently at Home Depot. Her background also includes time in the healthcare industry, supporting EMR systems across hospitals and medical offices, as well as a five-year stint in banking, working closely with credit card operations.

LBM Advantage elects NextGen leaders

LBM Advantage's NextGen Steering Committee has elected new leadership, naming Alex Moyer, Owner of A.D. Moyer Lumber as Chairman, and Adam Collins, Manager at S.W. Collins Company as Vice Chairman.

The N.Y.-based co-op says its NextGen Steering Committee plays a key role in shaping programming and initiatives designed to engage and develop the next generation of leaders within the LBM Advantage member community. The committee provides insight, guidance and fresh perspectives to help ensure the long-term strength and relevance of the organization. The group also helps lead an Annual Leadership Conference, quarterly Roundtables and other educational sessions throughout the year.

Annandale Millwork and Allied Systems expanding in Va.

Virginia Governor Glenn Youngkin has announced that Annandale Millwork and Allied Systems Corporation and Frogale Lumber Supply, a family-owned manufacturer of structural building components and millwork, will invest $11.5 million to expand operations in Newport News, Va. This expansion is expected to create 154 new jobs and includes a commitment to purchase more than $6 million in Virginia-grown forest products over the next three years.

“Annandale Millwork and Allied Systems’ expansion is another strong example of Virginia’s pro-business climate delivering real results for our communities,” said Youngkin. “I congratulate the company on its continued growth, its significant investment in Newport News, and its commitment to supporting Virginia’s forestry industry.”

Simpson Strong-Tie Celebrates Grand Opening of New, 500,000-Square-Foot Manufacturing Facility in Gallatin, Tennessee

Simpson Strong-Tie, the leader in engineered structural connectors and building solutions, marked the grand opening of its newest manufacturing plant, located in Gallatin, Tennessee, with a ribbon cutting, celebration and tours on Thursday, January 15, 2026.

The 500,250-square-foot, $125 million facility will test and manufacture a range of anchors, fasteners and Quik Drive® fastening tools. The facility opened with 227 employees, including machine operators, maintenance technicians, heat treat techs, and process and product engineers, and is expected to create an additional 20 jobs in 2026.