The National Flood Insurance Program has been extended until January 2026 through a continuing appropriations bill signed on Nov. 12, and lawmakers were quickly met with calls to reform the Federal Emergency Management Agency, which administers the flood program.
The NFIP expired Oct. 1 after lawmakers were unable to reach a funding compromise. Disagreement over enhanced Affordable Care Act tax credits - set to end in December - contributed to the breakdown in negotiations, resulting in more than a month of uncertainty for policyholders and real estate transactions, BestWire reported.
The new funding measure also reinstates all NFIP policies retroactive to Oct. 1 and maintains current premium levels, according to Rep. Troy Carter of Louisiana’s 2nd District. Carter said the extension provides temporary relief but does not address the long-term stability of the program.
“These flood insurance authorization extensions shouldn’t be tied to government funding, and I’ll continue to work toward long-term reauthorization,” Carter said in a statement. “Families shouldn’t lose their coverage or face higher premiums because of political gridlock.”
Industry officials said the extension should help clear the backlog of delayed home closings, new flood insurance purchases and policy renewals that were halted during the 40-day lapse. Jimi Grande, senior vice president of federal and political affairs at the National Association of Mutual Insurance Companies, said the disruption illustrates the need for more durable protections.
“NAMIC continues to urge Congress to act now - before the next shutdown, whenever it may - to pass a long-term extension for the NFIP and much-needed reforms that will ensure critical flood insurance coverage is available for all Americans,” Grande said in an email.
While NAMIC welcomed the extension, the association said Congress needs to reform FEMA and expressed support for the Fixing Emergency Management for Americans Act.
In a letter to House leadership, Grande said the bill has broad bipartisan support and offers a pragmatic approach to reforming the agency without upending the country’s emergency management system.
Passed by the House Transportation and Infrastructure Committee in a 57-3 vote, the bill would return FEMA to a cabinet-level position, NAMIC said. The association said such a move could streamline federal disaster response and recovery, reduce bureaucracy, and encourage loss prevention and mitigation projects.
“Rethinking FEMA’s role and operations to prioritize mitigation at scale in charting the direction for America’s built environment will mean fewer homes destroyed by catastrophes and, in turn, more stability for families, communities and markets,” Grande said.
