Congress Approves Funding for NFIP and Government for 45 Days


With the National Flood Insurance Program (NFIP) and federal government just hours away from a funding lapse, House and Senate lawmakers acted in a bipartisan manner to fund the operations of the federal government, including the NFIP, for an additional 45 days through mid-November.

NAHB has been at the forefront in working with lawmakers to find a solution that would not let the NFIP lapse and force the government to shutter its doors. The continuation of the NFIP is an important victory for NAHB and members of the residential construction industry who rely on this program to provide certainty and predictability for the flood protection and mitigation strategies for which it was designed.

After the House moved first to continue funding for the government and the NFIP, NAHB Chairman Alicia Huey said: “NAHB has worked tirelessly with lawmakers to make them aware that even a short-term disruption to the flood insurance program would force delays — and in some cases, cancellations — to home sales and multifamily transactions that require federal flood insurance under the NFIP.”

In a letter sent to lawmakers earlier this week when it was unclear whether the NFIP would lapse and the government would shut down, NAHB said: “What the housing market needs now is stability and certainty. Uncertainty over whether the NFIP will lapse, coupled with the growing possibility of a government shutdown, may have a significant negative economic effect on home builders, home buyers, multifamily developers and renters. To this end, we urge Congress to consider the effects of a government shutdown on federal programs that directly support the construction of new housing, help buyers or renters access housing, or provide federal permits that may be required for construction.”

The NFIP’s last multi-year reauthorization expired on September 30, 2017. Since then, the program has been extended 22 times (23 times as of today) and allowed to briefly lapse on three occasions. Past disruptions have caused immediate and widespread impacts on property sales, home values and consumer confidence.

NAHB believes that the NFIP is critically important for the economy, and the housing industry specifically. Moving forward, we will continue to work with Congress to achieve a long-term reauthorization of the NFIP that will keep the program fiscally sound and let builders provide safe and affordable housing.

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