Rep. Barragán Introduces Legislation to Keep Tariffs From Driving Up the Cost of New Homes

FOR IMMEDIATE RELEASE

September 17, 2026

Contact: [email protected]

WASHINGTON, D.C. - Yesterday, Congresswoman Nanette Barragán (CA-44) introduced the Housing Tariff Exclusion Act, legislation to help lower the cost of building new homes, by creating a targeted process to exclude certain homebuilding materials from tariffs when domestic supply cannot meet demand.

At a time when communities across the country are struggling with a shortage of housing, higher construction costs can make it even harder to build the homes families need. Estimates of the national housing shortage vary by methodology, with recent estimates ranging from roughly 3 million to 5 million homes.

"Families are already facing the high cost of buying or renting a home. We should not make it more expensive to build the homes our communities need," said Rep. Barragán. "Tariffs can raise construction costs, which in turn hurt the number of homes available for the Americans who need it most. The Housing Tariff Exclusion Act takes a targeted approach by giving the federal government a process to provide relief when domestic production simply cannot keep pace. We need to make it easier-not more expensive-to build housing in America."

"With the nation in the midst of a housing affordability crisis, the National Association of Home Builders (NAHB) commends Rep. NanetteBarragán (D-Calif.) for introducing legislation to help lower housing costs," said NAHB Chairman Bill Owens. "Tariffs on building materials are driving up construction costs and putting homeownership further out of reach for families. The Housing Tariff Exclusion Act would help relieve these cost pressures by creating a process to exempt key building materials from tariffs, giving businesses greater certainty and helping make housing more affordable."

"The National Lumber and Building Material Dealers Association (NLBMDA) is proud to support the Housing Tariff Exclusion Act and thanks Representative Barragán for her leadership on this issue. Recent trade actions have placed additional pressure on the cost and availability of essential building materials at a time when improving housing affordability is a national priority," said Jonathan M. Paine, CAE, President & CEO of NLBMDA.

"Congress recognized through its recent bipartisan housing legislation that expanding supply is central to improving affordability. The Housing Tariff Exclusion Act carries that work forward by addressing tariffs that increase the cost of essential building materials. By establishing an exclusion process for critical homebuilding materials, this legislation would provide greater certainty for dealers and builders, ease construction cost pressures and support the increased housing production needed to improve affordability nationwide."

A December 2025 analysis from the Center for American Progress estimated that tariffs on homebuilding materials could add approximately $17,500 to the cost of building a new home and contribute to roughly 450,000 fewer homes being built through 2030.

The Housing Tariff Exclusion Act would establish a transparent process for U.S. businesses to seek tariff exclusions for goods used in home construction. The legislation would:

• Require the Secretary of Commerce to establish a process for businesses to request exclusions for homebuilding materials, including expedited exclusions for critical homebuilding products;
• Require the Secretary to exclude tariffs on qualifying homebuilding products when domestic supply or production capacity cannot meet demand;
• Apply the process to qualifying tariffs implemented since January 19, 2025, while excluding antidumping, countervailing, and Section 201 safeguard duties;
• Allow qualifying imports to receive the lower tariff rate when an exclusion is granted;
• Sunset the Secretary's exclusion authority on October 1, 2029, while allowing previously granted exclusions to remain in effect; and
• Exclude the 15 rare earth elements identified in the legislation from the process due to separate national security considerations.

The Housing Tariff Exclusion Act would give builders and businesses greater certainty while maintaining a process focused on domestic supply, market demand, and the specific needs of the housing construction industry.

Original cosponsors for this bill are: Reps. Mary Gay Scanlon (PA-05), Donald Norcross (NJ-01). The Senate companion, S. 3943, is led by Senators Jacky Rosen (D-NV) and Chris Coons (D-DE).

Full text of the bill can be foundHERE.

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