NFIP Reauthorized With Passage of Funding Bill to End Government Shutdown

The National Flood Insurance Program (NFIP) has been reauthorized until the end of January 2026.

With the passage of HR 5371, which ended the 43-day shutdown of the federal government, NFIP was temporarily extended until Jan. 30, 2026.

The program lapsed without a reauthorization at the start of Oct. 1. No new federal flood insurance policies were sold or renewed during the timeframe. The Federal Emergency Management Agency (FEMA), administrator of NFIP, could have made payments for claims with available funds.

The spending bill reauthorizes NFIP retroactively, backdated to Oct. 1, according to Louisiana Commissioner of Insurance Timothy Temple. Citing a FEMA bulletin, Temple said NFIP insurers can issue policies effective as of the date they received the application, and any claims made during the lapse can be processed and paid.

“The end of the federal government shutdown means the National Flood Insurance Program lapse has also ended, and likely a rush of activity as would-be homeowners who were looking to close a mortgage for the last 40 days seek to gain new coverage and existing policyholders obtain their renewals,” said Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies (NAMIC). He said the trade association continues to urge Congress to pass a long-terms extension and reforms.

About 1,300 property sales per day and about 40,000 closings per month are impacted by a lapse in the flood insurance program, according to the National Association of Realtors (NAR). In a letter to lawmakers in September, NAR also recommended a long-term reauthorization of NFIP with reforms to include improved flood maps, mitigation efforts, and policy pricing. According to its research, NAR said NFIP supports about 500,000 home sales annually.

NAMIC, the American Property Casualty Insurance Association (APCIA), National Conference of Insurance Legislators (NCOIL),The Council of Insurance Agents and Brokers, Independent Insurance Agents & Brokers of America, Reinsurance Association of America, and Wholesale & Specialty Insurance Association urged congressional leaders to reauthorize NFIP shortly before its expiration. Many have also called for a long-term reauthorization to avoid lapses.

NFIP has been reauthorized more than 30 times since 2017.

APCIA provided feedback to a FEMA Review Council last month. Among its recommendations were at least a 7-year reauthorization, regular reviews of flood maps, and incentives for homeowners to mitigate losses.

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