Barrasso Introduces Bill to Repeal Green New Deal Housing Mandates

U.S. Senator John Barrasso (R-Wyo.) unveiled the HOUSE Act Tuesday, legislation aimed at repealing federal energy-efficiency mandates for homes financed through the Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA).

Supporters say the rules, adopted under the Biden administration, make new homes more expensive, pricing some first-time buyers out of the market. “The HOUSE Act repeals these expensive mandates and gives Americans the tools they need to make their dream of owning a home a reality,” Barrasso said.

Ken Gear, CEO of Leading Builders of America, added that first-time buyers, rural families, and lower-income households are hit hardest by the new standards, which could increase down payment requirements.

The bill is backed by more than a dozen Republican senators, including Shelley Moore Capito (R-W.Va.) and Cynthia Lummis (R-Wyo.), and has a House companion bill introduced by Rep. Andy Biggs (R-Ariz.).

The rules stem from the 2021 International Energy Conservation Code (IECC), requiring federally financed homes to meet updated efficiency standards. Critics say the new requirements could add up to $31,000 to the cost of a home, while energy savings may not be realized for decades. HUD’s own analysis suggested that higher costs could reduce construction for Federal Housing Administration borrowers.

• If passed, the HOUSE Act would:
• Repeal HUD and USDA’s 2021 efficiency standards.
• Return to 2009 standards to reduce upfront costs.
• Block similar mandates for VA-backed mortgages.
• Restrict future federal efficiency mandates unless at least 26 states already use them.

Proponents of the 2021 standards argue that higher upfront costs are offset over time by lower energy bills and reduced carbon emissions. HUD says modernized standards make homes more energy-efficient, saving homeowners money in the long run.

The bill highlights the tension between short-term affordability and long-term efficiency. While the HOUSE Act could make homes more accessible now, opponents warn it may slow adoption of energy-saving construction practices, potentially increasing costs and environmental impacts over time.