This post was updated on Jan. 7.
As the partial government shutdown enters its 17th day, no resolution to the dispute over border wall funding appears in sight after weekend discussions between White House officials and congressional Democrats produced no deal to reopen most of the government.
As a result of the budget impasse, roughly one-quarter of the government ran out of funding and was forced to close on Dec. 22. The shutdown impacts several federal departments, including HUD, Agriculture, Commerce, Justice, Homeland Security, Interior, State, Transportation and Treasury.
While the shutdown affects housing and home builders
, it is still unclear how long it will remain in effect, as House Democrats remain staunchly opposed to President Trump's wall demand. In most cases, the short-run impacts will be minor. A long-term shutdown, lasting several weeks or a month or more, could have significant impacts on mortgage accessibility and reduce housing demand.
As we previously reported
, the shutdown already threatened the funding of the National Flood Insurance Program (NFIP) after FEMA abruptly announced last week that NFIP insurers and insurance agents could not sell or renew flood insurance policies backed by the program because of a lack of government funding due to the shutdown. NAHB worked diligently to resolve the funding issue and ensure that new policies and renewals would not be impacted by the shutdown.
In general, NAHB members should expect delays for any housing-related federal government programs that are still operating and plan accordingly. NAHB continues to monitor the situation closely and is calling on federal lawmakers to act quickly to reach an agreement with the White House to fund the government.
For more information, contact Jessica Hall
at 800-368-5242 x8253.