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New York Small Businesses Win Legal Challenge to Onerous New Wetlands Regulations

New York Small Businesses Win Legal Challenge to Onerous New Wetlands Regulations

April 8, 2026

NFIB joined a lawsuit in 2025 challenging a harmful, vague wetlands mandate in New York.

FOR IMMEDIATE RELEASE

ALBANY, NY (April 8, 2026)  The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy association, scored a major legal win today for small business property rights and economic development as the Supreme Court of the State of New York sided with plaintiffs against onerous new wetlands regulations promulgated by the state. Last year, NFIB joined a coalition of business organizations in filing a lawsuit at the Supreme Court challenging the New York Department of Environmental Conservation’s (DEC) heightened freshwater wetlands regulations, which drastically increased the number of regulated wetlands in the state and placed an undue burden on property owners, developers, and small businesses throughout the Empire State.

“This is a major win for small business owners and property owners across the state,” said NFIB New York State Director Ashley Ranslow. “As we said from the beginning, this extreme mandate was as ambiguous as it was unlawful, and we are gratified at the judges’ decision. The DEC’s rule claimed authority over an indefinite amount of land while simultaneously dodging the responsibility of identifying what land would qualify. Instead, that burden was shifted onto the state’s property owners and small businesses who were forced to initiate a costly, onerous process themselves, or risk severe penalties. The DEC’s failure to properly follow administrative rulemaking requirements was evident in their failure to recognize the negative impact this statute would have on New York’s small businesses, property owners, and local communities. This is a great relief for entrepreneurs, small business owners, homeowners, those nearing retirement, and for New York State as a whole.”

The lawsuit argued that the DEC should be enjoined from enforcement of the Wetland Regulations because 1) They failed to provide the required materials in accordance with the State Administrative Procedure Act (SAPA), 2) The rule’s extension of regulated areas is arbitrary and capricious, and 3) It is unlawful for an unconstitutionally vague statute to provide for criminal penalties.

NFIB filed this litigation last year in partnership with The Business Council of New York State, the New York State Economic Development Council, the New York State Builders Association, the New York Construction Materials Association, Associated General Contractors of New York State, the New York State Association of Realtors, the National Waste & Recycling Association, and several small business developers, including NFIB member and small business owner Seth Arluck of New Hampton Lumber.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court. 

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For over 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.

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NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

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