EO-14394
Removing Regulatory Barriers to Affordable Home Construction
- Signed
- Mar 13, 2026
- Published
- Mar 18, 2026
Federal Register: 2026-05388
Source: Federal Register.
Directs federal agencies to reduce regulatory barriers to home construction
Impact7/10
What it does
This order directs multiple federal agencies to review and reduce regulations related to wetlands, stormwater, energy efficiency, and environmental permitting that the order identifies as barriers to residential construction. It also directs the Department of Housing and Urban Development to develop a set of best practices for state and local governments on streamlining housing permits and reducing construction mandates. Additionally, it directs the Treasury and HUD to explore aligning Opportunity Zone tax incentives with single-family home construction in low-income areas.
Who benefits
Home builders and residential developers facing reduced permitting costs and timelines. Prospective homebuyers who would potentially see lower home prices if construction costs fall. Manufactured and modular housing manufacturers, whose products face fewer restrictions under the order's best practices guidance. Residents of Opportunity Zones and low-income census tracts who could see increased investment in single-family home construction. Suburban and exurban communities targeted for expanded development. Rural homebuyers who rely on USDA-financed housing. Lenders and buyers in the manufactured housing market, through potential changes to FHFA chattel lending rules.
Who is affected
Communities near wetlands, rivers, and waterways that could face reduced Clean Water Act protections if stormwater and Section 404 permitting requirements are loosened. Homeowners and renters in areas where relaxed energy-efficiency standards could result in higher long-term utility costs. Environmental and conservation groups whose advocacy depends on existing permitting frameworks. State and local governments whose land-use authority — including urban growth boundaries and zoning rules — is targeted by the best practices guidance, even though compliance is not mandated. Historic preservation communities affected by reduced Section 106 review burdens. Workers in energy-efficiency and green-building industries whose markets could shrink. Tribal governments whose Section 404 permitting assumption authority is subject to review.
Supporters argue
Supporters argue that the United States faces a structural housing shortage driven in large part by regulatory costs that add tens of thousands of dollars to the price of a new home, pricing out first-time and lower-income buyers. They contend that the president's Take Care Clause authority and broad statutory delegations under the Clean Water Act, NEPA, and the National Historic Preservation Act give the executive branch ample power to direct agencies to implement these laws in a less burdensome manner, and that reducing construction costs is one of the most direct tools available to improve housing affordability without new legislation.
Opponents argue
Opponents argue that many of the regulations targeted — including Clean Water Act Section 404 wetlands permits, NEPA environmental reviews, and energy-efficiency standards — exist to protect public health, natural resources, and long-term homeowner costs, and that weakening them transfers costs onto communities and future residents rather than eliminating them. They contend that several of the directed agency actions would require formal notice-and-comment rulemaking under the Administrative Procedure Act, meaning the order's practical effect depends heavily on subsequent agency action that could face legal challenge, and that the major-questions doctrine may limit how far agencies can go without explicit congressional authorization.
Constitutional basis
Executive orders rest on constitutional authority or statutory delegation. This summary describes the legal grounding cited or implied by the order.
The order rests on the Take Care Clause (Article II, §3), which grants the president authority to direct executive agencies in implementing federal law. Specific statutory delegations include the Clean Water Act (33 U.S.C. §1344) for wetlands and stormwater permitting, the National Environmental Policy Act (42 U.S.C. §4321 et seq.) for environmental review streamlining, the National Historic Preservation Act (54 U.S.C. §306108) for Section 106 guidance, and the Housing and Economic Recovery Act of 2008 for FHFA authority. The order is reversible by a future president and supplements but does not replace existing legislation; actual regulatory changes would require agency rulemaking consistent with the Administrative Procedure Act.