Advocacy Update from NLBMDA

Below, the NLBMDA recaps some of its latest advocacy efforts to promote the priorities of the LBM industry. 

Navigating a shifting trade environment

Since the release of the White House’s America First Trade Policy on January 20, NLBMDA has been closely monitoring the situation as the administration seeks redefine the United States’ relationship with its global trading partners. 

Early on, NLBMDA called on the White House and U.S. Trade Office to exclude additional tariffs on lumber and building materials imports that are vital to the domestic residential construction sector. On April 2, the White House announced blanket tariffs on nearly all global imports. Notably, the administration granted an exclusion for lumber imports, which the NLBMDA views as a major win for the industry. 

While there remains a long road ahead, and the tariff issue remains unclear, NLBMDA will remain steadfast in advancing the interests of the LBM industry to ensure that there remains stability and long-term certainty in the lumber and building materials supply chain. 

Corporate Transparency Act (CTA) reform

A few weeks prior to President Trump’s inauguration, nearly 33 million small businesses faced a pressing deadline to file beneficial ownership information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN). Failure to do so would have resulted in a daily civil penalty of $591 per day of noncompliance -- or even a criminal conviction that could entail a fine of up to $10,000 or two years of imprisonment. 

In 2024, NLBMDA launched an education campaign to ensure that LBM dealers were aware and achieved compliance with the law in order to avoid these steep penalties. Despite millions of small businesses unaware of their obligations under the law, federal officials pressed forward with a January 1, 2024 deadline. 

In January 2025, NLBMDA and its coalition partners sent a letter to the White House and Secretary Scott Bessent emphasizing the need for regulatory relief. Following NLBMDA efforts, the Treasury Department announced plans to significantly rescope how the CTA would be interpreted. Today, all domestic reporting companies are exempt from CTA BOI filing requirements, a major reversal that signals the administration’s desire to eliminate rulemakings that increase regulatory burdens for small businesses. A final rulemaking is expected later this year that will finalize the new interpretation of the CTA. 

Promoting responsible forestry practices

Earlier this year, NLBMDA identified an opportunity to help lead efforts to overhaul forestry management and wildfire mitigation programs. Evidenced by the recent Southern California wildfires, there is an urgent need for reform and expansion of federal programs to protect the health of our nation’s forests. Lumber makes up the largest single product category supplied by building material dealers.

NLBMDA championed advocacy for the Fix Our Forests Act, which passed the House of Representatives earlier this year and has received bipartisan support and official introduction in the Senate. This legislation aims to make meaningful strides toward protecting regions most susceptible to wildfires. 

NLBMDA has also supported the Disaster Reforestation Act, a bill that allows forest owners to deduct the value of lost timber, and the Jobs in the Woods Act, a comprehensive workforce development initiative equipping the next generation with the training necessary to enter the lumber industry.

Next steps

NLBMDA says its work in the 119^th Congress is just beginning. Congress returned to Washington on Monday for a four-week session that will include the drafting of a robust reconciliation package. NLBMDA is working with lawmakers and staff to ensure that pro-business, growth-oriented tax provisions are extended. 

The reconciliation bill may also serve as the legislative vehicle for the Affordable Housing Credit Improvement Act (AHCIA), which would significantly increase the supply of housing in the United States. This week, the AHCIA was reintroduced only a handful of days after NLBMDA members visited Washington to advocate and build support for the reintroduction of the legislation. Now having been reintroduced in the Senate and the House, Congress has an opportunity to deliver meaningful federal policy that would strengthen the residential construction sector.  

NLBMDA recently put together a new advocacy one-pager that outlines the organization's main priorities for the 119^th Congress.

With the first one hundred days now in the rear-view mirror, NLBMDA says its focus is on the next 612 days of this legislative session. And it remains determined to advocate for legislative and regulatory opportunities that promote the long-term success of the LBM industry.