Congress must periodically renew the NFIP’s statutory authority to operate. On December 20, 2019, the President signed legislation passed by Congress that extends the National Flood Insurance Program’s (NFIP’s) authorization to September 30, 2020.
Congress must now reauthorize the NFIP by no later than 11:59 pm on September 30, 2020.
FEMA and Congress have never failed to honor the flood insurance contracts in place with NFIP policyholders. Should the NFIP’s authorization lapse, FEMA would still have authority to ensure the payment of valid claims with available funds. However, FEMA would stop selling and renewing policies for millions of properties in communities across the nation.
NFIP reauthorization is an opportunity for Congress to take bold steps to reduce the complexity of the program and strengthen the NFIP’s financial framework so that the program can continue helping individuals and communities take the critical step of securing flood insurance.
While the reauthorization lasts in excess of 9 months, as compared to the most recent extensions only lasting 3 months, it does come towards the end of the current election cycle.
Be sure, we will be watching closely.
Source: FEMA
