Chance of Government Shutdown Grows as Senate Fails to Pass Stopgap Spending Bills

In two votes today, the Senate blocked Republican-led and Democratic-led plans to keep the government funded, increasing the odds that a government shutdown will occur at 12:01 a.m. on Oct. 1.

Prior to the votes, NAHB sent a letter to the full Senate urging lawmakers to pass a plan that would extend government funding and authorization of the National Flood Insurance Program (NFIP) through Nov. 21. Without a government extension, the NFIP is set to expire on Oct. 1.

A failure to reauthorize the NFIP as of Oct. 1 will delay all new home sales and insurance renewals for property owners who have a federally backed mortgage for homes or properties that lie in a Special Flood Hazard Area.

Past disruptions of the NFIP have caused immediate and widespread negative impacts on property sales, home values and consumer confidence.

NAHB will continue working with lawmakers to find a solution that will not let the NFIP lapse and force the government to shutter its doors. We are also calling on Congress to pass a long-term reauthorization of the NFIP to provide certainty, predictability and peace of mind to policyholders so that we are not stuck in this cycle of being tied to the budget process.