NFIP Lapse Possible as Congress Finalizes Government Funding

• By: Nathan Riedel
• January 29, 2026

As of press time, Congress is working to finalize legislation to keep the federal government open beyond Friday, when current funding expires.

In November, Congress passed a continuing resolution, ending a record-long 43-day shutdown and funding the federal government through Jan. 30. That resolution allowed Congress to continue its work on the 12 appropriations bills to fund various federal departments and programs.

Last week, the U.S. House of Representatives completed its work on all 12 bills. To date, the U.S. Senate has passed six of those bills and is attempting to pass the remaining six this week. The National Flood Insurance Program (NFIP) is one of the federal programs at risk of lapsing if an agreement is not reached.

Senate leaders are optimistic they will reach a compromise to avert a shutdown. However, if they alter the House-passed legislative package, it will require another vote in the House when that chamber returns from recess early next week. As a result, the NFIP may lapse over the weekend and into next week.

Should a lapse occur, FEMA generally posts information on its website and has released a memorandum outlining procedures for such a lapse. The memorandum released in November 2025 provides an example.

The Big “I” will continue to work with Congress and the administration to avoid a lapse in the NFIP and advocate for a workable federal policy regarding flood insurance. However, insurance agents and brokers who sell and service NFIP policies should get in touch with the Write Your Own 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 update members through the News & Views e-newsletter on the status of government funding and the NFIP.

Nathan Riedel is Big “I” senior vice president of federal government affairs.