NFIP Lapse Possible as Congress Considers Funding Legislation
As of press time, Congress has not passed government funding legislation to keep the federal government open beyond Tuesday, Sept. 30, the end of the fiscal year.
The National Flood Insurance Program (NFIP) is scheduled to expire on the same date and an extension of the program is currently contingent on Congress passing new government funding legislation.
Last Friday, the U.S. House of Representatives passed a clean seven-week funding bill to keep the federal government open through Nov. 21, which was aimed at buying lawmakers more time to negotiate new funding levels for federal agencies.
The 217-212 vote was largely along party lines, with two Republicans voting against the measure and one Democrat voting in favor of it. However, the bill later stalled in the U.S. Senate, which was unable to achieve the necessary 60-vote threshold to pass the bill.
Currently, it is unclear whether Congress will act fast enough to fund the federal government beyond Sept. 30 and avoid a lapse of the NFIP. Ahead of a potential lapse, FEMA generally posts information to its website and releases a memorandum that outlines procedures if the program lapses.
When the NFIP last faced a serious threat of lapsing in December 2024, FEMA issued a memorandum. However, insurance agents and brokers who sell and service NFIP policies should adhere to up-to-date guidance and contact the Write Your Own (WYO) companies they work with if they have questions about procedures in the event of a lapse in NFIP authority.
The Big “I” will continue to work with Congress and the Trump administration to avoid a lapse in the NFIP and advocate for a workable federal policy regarding flood insurance. The Big “I” will also continue to update members through the News & Views e-newsletters on the status of government funding and the NFIP.
Nathan Riedel is Big “I” senior vice president of federal government affairs.
