The rescission of a Biden-era policy that added at least $20,000 to the cost of home was announced Tuesday by HUD Secretary Scott Turner and Agriculture Secretary Brooke Rollins.
In a release, the agencies said that a 2024 Final Determination issued under then President Joseph Biden rendered all new home construction ineligible for an FHA or USDA-backed mortgage loan unless the home was built according to what the agencies called the burdensome and expensive 2021 International Energy Conservation Code, a standard which has only been deployed in a few states.
“By rescinding this mandate, we are removing a significant regulatory barrier that added tens of thousands of dollars to the cost of a new home,” Turner said. “The Trump Administration’s focus is to facilitate new housing supply and ensure that every American family has a path to homeownership without being sidelined by bureaucratic red tape.”
HUD said that according to some estimates, enforcing the 2021 IECC as a mandatory nationwide standard would result in an increased home construction cost of between $20,000 and $31,000. HUD said that was an increase that pushes most new homes out of reach for many first-time homebuyers.
The agency said the mandate also would decrease new home production, complicate construction, and lengthen permitting and inspection timelines.
Delay Compliance Date
“Affordable rural housing is a top priority for the Trump Administration, and we are focused on removing all the unnecessary restrictions that artificially drive up new home prices,” Rollins said. “We launched the Rural Revival Agenda at USDA to bring rural communities to the forefront of our actions, and this joint determination restores common sense to our programs and ensures that we can continue bringing new affordable housing supply online for Americans.”
Since taking office, the Trump Administration has delayed the compliance date for the 2024 Final Determination.
Most recently, HUD said it published an extension on Feb. 3,that delayed the deadline for HUD programs until Dec. 31. In July 2025, HUD and USDA issued a Request for Information (RFI) seeking additional comment from stakeholders to help inform the agencies’ review of the 2024 standard.
As a result of the rescission, the FHA and USDA loan programs will comply with the energy efficiency standards that were in effect before publication of the 2024 Final Determination.
The agencies said that their determination also is aligned with a recent ruling from the U.S. District Court for the Eastern District of Texas that found that the Biden-era determination would decrease housing availability.
