May 18, 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.

NLBMDA Supports Revised Bipartisan Housing Package Released By Lawmakers

Last week the, the U.S. House Finance Services Committee, the committee with jurisdiction over housing policy, released revised text of the 21st Century ROAD to Housing Act, a sweeping bipartisan housing package aimed at addressing barriers to housing production and affordability challenges. For NLBMDA, the package represents an important opportunity to advance pro-supply housing policies that NLBMDA has identified as a long-standing policy priority. The House is expected to vote on the updated legislation this week where it will then be sent to the Senate for consideration.

NLBMDA supports the revised legislation and believes the updated House text strengthens the bill by keeping the focus on expanding housing supply. Notably, the revised text removes the Senate-passed provision that would have required certain build-to-rent properties to be sold after seven years, a change that helps avoid discouraging private investment in new housing development. While no single bill can solve America’s housing affordability challenges overnight, the 21st Century ROAD to Housing Act would advance common-sense, pro-supply reforms and provide Congress a meaningful vehicle to address persistent housing production constraints. NLBMDA will continue working with lawmakers to make the case for policies that support the businesses and supply chains that make construction possible.

NLBMDA Participates in Tax Bill Reception With Speaker Mike Johnson

Last week, NLBMDA was invited to participate in a reception hosted by House Speaker Mike Johnson (R-LA) following Tax Day, where lawmakers and stakeholders discussed the tax provisions enacted through last year’s tax and spending package. For NLBMDA and the LBM industry, the event provided an opportunity to reinforce the importance of tax policies that support independent dealers, reinvestment, and long-term planning. Key business provisions in the package included treatment of pass-through businesses, bonus depreciation, business interest deductibility, and other tax measures relevant to companies that invest in equipment, facilities, inventory, and workforce growth.

NLBMDA appreciated the opportunity to participation in the reception with Speaker Johnson and other House leaders and will continue engaging with lawmakers to ensure the LBM dealer perspective is represented as Congress evaluates implementation of the law and future tax policy affecting the industry.

House Transportation Committee Announces $580 Billion Five-Year Infrastructure Bill

On Sunday, the House Transportation & Infrastructure Committee released the BUILD America 250 Act, a bipartisan five-year surface transportation reauthorization package as funding under the current infrastructure law is set to expire at the end of September. The roughly $580 billion proposal would authorize federal highway, bridge, transit, freight, passenger rail, and safety programs for fiscal years 2027 through 2031, with a major focus on maintaining and improving the nation’s highway and bridge network.

NLBMDA is currently reviewing the legislation, with the committee expected to consider the bill at a hearing later this week. Last year, NLBMDA submitted comments to the Department of Transportation outlining infrastructure funding priorities and emphasizing that reliable surface transportation is essential to efficiently moving lumber, building materials, and equipment to jobsites. The bill also includes a new Highway Trust Fund revenue model through annual federal registration fees on electric and plug-in hybrid vehicles, including $130 for electric vehicles and $35 for plug-in hybrids, aimed at ensuring more roadway users contribute to long-term infrastructure investment.

BUILD America 250 also includes targeted log and forest-products hauling provisions, allowing Louisiana to issue special permits for certain vehicles transporting raw or unfinished forest products, including logs, pulpwood, biomass, and woodchips, up to 88,000 pounds on the Interstate System, and allowing Arkansas to permit covered logging vehicles up to 85,000 pounds for trips of up to 20 Interstate miles from origin to a storage or processing facility. Separately, the bill directs GAO to study whether to create a limited exception, similar to the agricultural exception, for intrastate transportation of diesel fuel by logging or timber companies on local roads beginning or ending on company property. NLBMDA will continue to engage with the House and Senate in the coming months as the infrastructure bill advances.

NLBMDA Webinar: Building More Housing: Unpacking the 21st Century ROAD to Housing Act

The 21st Century ROAD to Housing Act seeks to encourage new housing starts through a combination of regulatory streamlining, targeted incentives, and supply-side reforms aimed at accelerating construction and expanding the nation’s housing stock. America’s housing affordability and supply challenges have increasingly taken center stage in Washington, as lawmakers debate what could become the most significant federal housing package enacted in decades. In the coming weeks, Congress is expected to consider and vote on the legislation, as the White House has recently announced advancing housing legislation as a key policy priority.

The timely webinar will cover the genesis of the legislation, where the bill currently stands in Congress, and the key policies aimed at increasing housing production and reducing barriers to new development.

Join NLBMDA’s Government Affairs Coordinator Matthew Delaney on May 21 at 3:00 p.m. ET for a webinar on the 21st Century ROAD to Housing Act and the growing bipartisan effort in Washington to address the nation’s housing affordability and supply challenges.

Registration is now open for the ProDealer Industry Summit!

Registration is now open for the ProDealer Industry Summit, October 5-7 in Chicago, Illinois! Join us for 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.

Join us for enlightening sessions such as Declarations of Independents: Success Stories; AI Today: Making Better, Faster Decisions; and A State of Play from Washington, D.C.: An Insider Look into the Political Landscape. This is an event you won't want to miss!

Inflation spikes to 3.8 percent in April, higher than expected

Inflation accelerated sharply in April, with the consumer price index rising 3.8 percent over the past year and 0.6 percent in a single month, according to new Labor Department data. The spike was driven largely by the war in Iran, which has disrupted oil shipments through the Strait of Hormuz and pushed energy prices up 3.8 percent in April alone. Food prices also climbed 0.5 percent. Even excluding food and energy, core inflation rose 0.4 percent for the month and 2.8 percent year‑over‑year, signaling that higher costs are spreading across the broader economy. Inflation is now rising faster than wages, with price growth outpacing the 3.6 percent annual increase in pay. Economists warn that middle‑ and lower‑income families are being squeezed as higher gasoline and energy costs ripple through other goods and services. Analysts note that this is no longer just an oil‑price story but a sign of inflation taking hold across multiple sectors.

Existing-Home Sales Report Shows 0.2% Increase in April

Existing‑home sales ticked up 0.2% in April, according to the latest National Association of REALTORS® report, with regional performance varying across the country. Sales rose in the Midwest and South, held steady in the Northeast, and slipped in the West. Year over year, the South was the only region to post gains, while the West was flat and both the Northeast and Midwest saw declines. NAR Chief Economist Dr. Lawrence Yun attributed the modest national increase to improving affordability, noting that mortgage rates are lower than a year ago and income growth is now outpacing home‑price gains.

Inventory remains tight, however, creating a market where multiple offers are still common—though less frenzied than in recent years—while buyers take longer to make decisions. Yun also highlighted a rise in second‑home purchases, driven by stronger financial positions among higher‑income households and the continued influence of remote and hybrid work. Overall, the report reflects a housing market finding its footing amid mixed economic signals.

Pro-Supply Housing Bill Included in Crypto Legislation Passed by Senate Committee

Last week the Senate Banking, Housing, and Urban Affairs Committee passed the CLARITY Act out of committee, advancing the legislation to a vote on the Senate floor. The CLARITY Act would create clearer federal rules for cryptocurrency and digital asset markets. While the legislation as a whole as little implication to the LBM Industry, included in the legislative package is a pro-supply housing bill, the Build Now Act, supported by NLBMDA.

The Build Now Act would create a housing production incentive within the Community Development Block Grant program by rewarding certain cities and counties that improve their housing growth rates while reducing allocations by 10 percent for slower-growing jurisdictions. HUD would calculate housing growth using federal data, publish annual performance reports, and provide guidance on ways to reduce regulatory barriers and increase housing supply.

NLBMDA Joins 90+ Organizations Calling for Supreme Court Review of Corporate Transparency Act

NLBMDA joined more than 90 organizations in urging the U.S. Department of the Treasury and Department of Justice to support expedited Supreme Court review of the Corporate Transparency Act (CTA). The coalition letter notes that two pending petitions, National Small Business United v. Bessent and Texas Top Cop Shop, Inc. v. Blanche, raise significant constitutional, privacy, and federalism questions related to the federal government’s collection of beneficial ownership information from businesses and other legal entities.

The letter follows Treasury’s March 2025 interim final rule exempting domestic entities and U.S. persons from CTA reporting requirements, which provided meaningful relief for millions of small businesses. However, the underlying statute remains in place, leaving open the possibility of future compliance uncertainty. NLBMDA has consistently advocated for narrowing CTA obligations to prevent unnecessary burdens on small businesses and previously supported efforts to codify relief for domestic reporting companies.

Colorado Legislature Passes Swipe Fee Prohibition on Sales Tax

Complementing NLBMDA’s federal push for credit card swipe fee reform, several states are advancing legislation to address the increasingly excessive swipe fee burden placed on the merchant community. Most recently, the Colorado Legislature passed SB26-134, which would prohibit payment card networks from calculating percentage-based interchange fees on the sales tax portion of a credit or debit card transaction. The bill also bars networks from increasing fees on the nontax portion of a transaction to circumvent the prohibition.

The legislation has been sent to Colorado Gov. Jared Polis for consideration and would make Colorado the latest state to pursue limits on swipe fees applied to taxes merchants collect on behalf of the government. NLBMDA will continue to monitor the bill’s progress as it awaits final signature into law by the Colorado governor.

U.S. Senate Confirms Kevin Warsh as Next Federal Reserve Chair

In a 54-45 vote, the U.S. Senate voted on May 13th to confirm Kevin Warsh as the next Chair of the Federal Reserve, succeeding Jerome Powell at a time when inflation, interest rates, and housing affordability remain central economic concerns. Warsh, a former Federal Reserve governor, will take over leadership of the central bank as policymakers continue weighing inflation risks against broader economic conditions. Powell is expected to remain on the Federal Reserve Board of Governors, where his term runs through January 2028. President Trump is expected to hold a swearing-in ceremony for the new Fed Chair later this week.

NLBMDA Preparing Comments on OCC Credit Card Interchange Fee Rule

NLBMDA is preparing substantive comments in response to recent Office of the Comptroller of the Currency actions pertaining to the Illinois Interchange Fee Prohibition Act (IFPA). The OCC issued an interim final order concluding that federal law preempts the Illinois law, which would prohibit covered entities from charging or receiving interchange fees on the tax and gratuity portions of card transactions and restrict certain uses of payment card transaction data. The order is scheduled to take effect June 30, one day before the Illinois law’s July 1 effective date, with comments due May 29.

NLBMDA’s comments will emphasize the growing swipe fee burden on LBM dealers, particularly as dealers process high-dollar transactions on building materials and increasingly absorb card costs as a cost of doing business. NLBMDA will continue to advocate for policies that promote a more competitive, transparent, and fair payments system while ensuring dealers are not forced to pay excessive swipe fees on taxes or other amounts they do not retain as revenue.

Ganahl Buying Nichols Lumber

Ganahl Lumber Co., Anaheim, Ca., has agreed to purchase the assets and real estate of Nichols Lumber, Baldwin Park, Ca. The transaction is expected to close in the next 30 days subject to customary closing conditions.

Since 1958, Nichols Lumber has been a cornerstone of the Baldwin Park community. Today, as it partners with Ganahl Lumber, the company enters a new era of growth and opportunity. This transition not only strengthens the business but also provides Nichols employees with an exciting new opportunity and a long-term home within the Ganahl Lumber family, ensuring the same commitment to service and community for years to come.

rk MILES acquires Varney & Smith Lumber

rk MILES, a fourth-generation, family-owned lumber and building materials company based in Manchester Center, Vt., has acquired Varney & Smith Lumber Company, a long-standing lumberyard and building materials supplier located in Lisbon, N.H.

Varney & Smith Lumber has served the greater Lisbon area since 1974. “This is a good fit for both companies,” said Joe Miles, CEO of rk MILES. “Varney & Smith has deep roots in its community and a well-earned reputation for service. Our intent is to build on that foundation, support the existing team, and continue serving customers in a way that respects how business is done locally.”

US LBM makes a splash in the Carolinas

Georgia-based US LBM has acquired Builders Supply Company in Lancaster, S.C. Serving the greater Charlotte market since 1908, Builders Supply Company offers one of the largest lumber and millwork inventories in the Carolinas, with products ranging from framing material and engineered wood to window and door distribution and install services.

From April 20–23, LMC dealers gathered on the University of Pennsylvania campus for an executive education experience. Together, they invested in the knowledge, perspective, and leadership skills that drive long‑term success. LMC’s relationship with the Wharton School of Business offers members an exclusive opportunity to grow as business professionals and individuals while expanding their insights and perspectives.