Congress did not reauthorize the program ahead of its Sept. 30 expiration. (Credit: Diego M. Radzinschi/ALM)
The National Flood Insurance Program expired on Sept. 30, 2025, after Congress failed to reauthorize it before shutting down the government due to a partisan budget standoff.
Congress passed a short-term reauthorization of the program six months ago. Its deadline coincided with a budget passage mandate that also wasn't met. The U.S. government is essentially closed for the foreseeable future.
The NFIP covers 4.7 million Americans. Even with the program in lapse, the Federal Emergency Management Agency will still pay valid claims from existing policies. But no new policies will be sold, and homeowners with expiring contracts won’t be able to renew.
Real estate transactions in floodplains also have halted. About 1,300 property sales per day and about 40,000 closings per month will be affected, according to the National Association of Realtors. The NFIP buoys about 500,000 home sales annually.
The NFIP’s borrowing authority is also reduced. With the program in lapse, it is only able to borrow $1 billion — down from $30.4 billion — from the U.S. Treasury if needed, which could impact its ability to pay claims following a natural disaster. That's particularly risky right now, as the United States is in the middle of hurricane season.
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