Overview

• FEMA’s National Flood Insurance Program remains unable to issue new policies or process renewals since Sept. 30, while existing coverage stays in force and claims are paid only as funds allow.
• Real estate deals in flood zones are being delayed or rerouted, with some lenders closing loans under regulator guidance and others turning to private flood insurance that can be costlier and more selective.
• Limited workarounds persist as agents say renewals printed before the lapse can be paid within a 30‑day grace period, though policy transfers and changes are restricted and may be queued until operations resume.
• Republican and Democratic leaders have not advanced a stand‑alone reauthorization as both sides use the program in funding negotiations, with Speaker Mike Johnson calling it leverage and past NFIP extensions vulnerable to single‑senator objections.
• Housing programs face wider strain as VA and FHA processes see delays, USDA stops new loans, and 4.7 million NFIP policies backing about $1.3 trillion in exposure heighten concerns during active storm season.