National Flood Insurance Program’s Authority to Expire in December

The National Flood Insurance Program is once again set to expire in two months. Early last month, NFIP’s authority to operate was renewed when the president signed legislation passed by Congress to keep NFIP running until midnight Dec. 12. According to the Congressional Research Service (CRS), there have been 36 short-term extensions of the NFIP since the end of fiscal year 2017. The program was reauthorized in November 2025 and again in February and September 2026. Last November’s reauthorization came after a 43-day government shutdown. 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, but its ability to borrow from the U.S. Treasury was reduced to just $1 billion from more than $30 billion. The insurance industry and others – including the National Association of Realtors (NAR) – have been steadfast in lobbying for long-term extensions and reform of the program. Last year, the National Association of Mutual Insurance Companies, 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 joined organizations representing real estate, mortgage banking, financing, and property management industries in sending a letter in support of NFIP authorization and reform. Read the letter: 2025 NFIP Extension Letter Flood insurance is required for a mortgage in more than 20,000 communities nationwide, according to NAR. The federal flood insurance program has close to 4.5 million flood insurance policies providing almost $1.3 trillion in coverage, said CRS. Earlier this year, a task force set up by the president to examine FEMA came away with recommendations to reform the agency, including NFIP. These reforms included revisions to flood maps and rating methods and incentivizing the launch of a take-out program. Topics Flood Was this article valuable? Thank you! Please tell us what we can do to improve this article. Thank you! % of people found this article valuable. Please tell us what you liked about it. Here are more articles you may enjoy.