January 1, Flood Insurance At Risk In Shutdown Fight

Wyatt’s Take

• Millions could lose flood insurance if funding lapses.
• Republicans urge swift action to prevent a shutdown.
• This fight puts the housing market and families in danger.

The Trump administration is warning that millions might lose flood insurance unless Democrats back a House-passed spending bill that extends the National Flood Insurance Program (NFIP). The White House says this bill is needed to keep the government open and protect homeowners during hurricane season.

Democrats oppose the current plan because of larger spending disagreements. The administration says holding up the NFIP threatens homeowners and the housing market, especially as storms hit harder this time of year.

“The NFIP is a vital program utilized by millions of Americans, and it’s not a hard call to extend it – which is exactly why the administration supports the House-passed CR that would do so. Unfortunately, Democrats are happy to shut down the government and hurt the many thousands of Americans who rely on this program in the process.”

Without new authorization, up to 1,300 property sales each day could be blocked, possibly stalling 40,000 deals per month in areas needing flood insurance for mortgages. Over 400,000 policies run out in October alone, and more than 250,000 families could lose coverage if Congress stalls.

In previous years, disruptions in the program have slowed the housing market and left homeowners unsure about their future.

“Past disruptions of the NFIP have caused immediate and widespread negative impacts on property sales, home values and consumer confidence,” the National Association of Home Builders warned. “Home sales would cease in areas where flood insurance is mandatory in order to obtain a mortgage. What the housing market needs now is stability and certainty. NAHB calls upon the House to act quickly to continue to fund the operations of the federal government including the extension of the NFIP.”

FEMA has $2.6 billion for flood claims today, but can’t borrow more from the Treasury if a major storm hits, which could leave people without a safety net. Since 2017, Congress has passed over 30 temporary fixes for this program, sometimes causing delays and confusion for homeowners each time coverage runs out.

If lawmakers don’t reach a deal, FEMA will have to stop writing and renewing flood insurance by October 1, just as the peak of hurricane season could bring real danger to American families.

Full story at Fox News

Wyatt Matters

This is about protecting working families and their homes—our livelihoods are on the line when leaders in Washington play games with disaster relief. Folks need certainty, not political standoffs, especially when storms are brewing.