President Trump Signs Executive Order on Housing Construction

Legislative

March 16, 2026

On March 13, 2026, President Trump signed an Executive Order titled “Removing Regulatory Barriers to Affordable Home Construction.” The order directs multiple federal agencies to review and revise regulations that affect housing construction costs and timelines. Here’s a breakdown of what it does.

Cuts Federal Environmental and Permitting Requirements

The EPA and Army Corps of Engineers are directed to review and revise water-related permitting rules — including stormwater, wetlands, and Clean Water Act standards — with an eye toward reducing construction costs and speeding up approvals. The Council on Environmental Quality is directed to issue guidance expanding the number of housing projects that are exempt from lengthy federal environmental reviews under NEPA. The Advisory Council on Historic Preservation is directed to simplify historic review requirements for housing and related infrastructure projects.

Reviews Energy and Building Mandates

The Secretaries of Agriculture, HUD, and Energy, along with the Federal Housing Finance Agency (FHFA), are directed to review and potentially roll back energy-efficiency, water-use, and alternative-energy requirements for housing, including manufactured homes.

Promotes State and Local Regulatory Reform

Within 60 days, HUD is directed to publish a set of regulatory best practices for state and local governments. These best practices would include capping permitting timelines and fees, allowing by-right development for single-family homes, easing restrictions on manufactured and modular housing, and removing growth boundaries that limit residential development. Federal agencies are directed to offer incentives to states and localities that adopt these practices.

Connects Opportunity Zones to Home Building

The Treasury Department and HUD are directed to explore aligning Opportunity Zone tax incentives and New Markets Tax Credits with single-family home construction in qualifying communities.

What to Watch

The order sets timelines for agency action, but the real impact will depend on how each agency implements its directives. NARPM will continue to monitor developments and keep members informed as guidance and rule changes are proposed. Stay tuned!

For more information, you can read the full Executive Order and the accompanying Fact Sheet on the White House website.


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