The end of the 43-day federal government shutdown also saw the temporary reauthorization of the National Flood Insurance Program (NFIP) through Jan. 30, 2026, which had lapsed as of Oct. 1 and left the program unable to sell or renew flood policies.
The federal spending bill (H.R. 5731) retroactively reauthorized the NFIP to Oct. 1, 2025, and allows policies to be issued as of the date applications for coverage were received. According to an NFIP bulletin, the 30-day grace period for payment of renewal premiums has been extended to Jan. 15 or 30, 2026, depending on the date of expiration.
While NFIP’s future is secure at least until the end of January 2026, interested parties have urged Congress to consider other reforms.
Rep. Troy Carter (D-LA), who had cosponsored legislation to reauthorize and backdate the NFIP during the federal shutdown, advocated for long-term reauthorization of the NFIP.
“I am relieved that the National Flood Insurance Program (NFIP) was reauthorized temporarily,” said Carter in a statement. “This should allow policyholders whose policies lapsed during the Republican shutdown to renew their policies retroactively to October 1, 2025, at their current premium rates. This action follows bipartisan legislation I introduced to achieve the same goal.”
He added, “However, this is a short-term solution as this bill only extends the NFIP to January 30, 2026. These flood insurance authorization extensions shouldn’t be tied to government funding, and I’ll continue to work toward long-term reauthorization. Families shouldn’t lose their coverage or face higher premiums because of political gridlock.”
Rep. Carter’s proposed legislation also seeks to avoid leaving NFIP policyholders with lapses in coverage that would leave property owners paying higher rates sooner than expected.
“Under FEMA’s Risk Rating 2.0, existing policyholders transition gradually to full-risk rates, but lapsed policies must pay those rates immediately upon reauthorization,” Carter and his co-sponsor Rep. Mike Ezell (R-MS) said in a statement.
North Carolina Governor Josh Stein and Insurance Commissioner Mike Causey banded together to request that Congress pass legislation to offer proactive solutions for coastal homes at risk of being swept away by the ocean.
“Since 2020, 27 oceanfront houses have collapsed into the ocean on North Carolina’s Outer Banks, including 16 houses just since this September. When these houses collapse, it isn’t just a tragedy for the homeowners. The destroyed houses also spread debris for miles and risk people’s safety on our beaches,” Stein and Causey said in a recent letter to the U.S. House Financial Services Committee.
The officials supported a bill (H.R. 3161) that would authorize NFIP payments before properties collapse due to shoreline erosion, allowing owners to demolish or relocate the at-risk buildings. There are “hundreds” of similarly exposed oceanfront structures, Stein and Causey warned.
Broader FEMA reform
The National Association of Mutual Insurance Companies has advocated for broader reforms to the Federal Emergency Management Agency (FEMA), urging the passage of a bill (H.R. 4669).
The measure, introduced by Rep. Sam Graves (R-MO), would elevate FEMA to a cabinet-level agency and encourage states to mitigate natural disaster risks. It passed out of the House Transportation and Infrastructure Committee in September.
The bill would “help create a streamlined and more accountable FEMA that is better equipped to prepare for, respond to, mitigate against, and recover from increasingly severe and extreme weather events facing all Americans,” according to Jimi Grande, senior vice president of federal and political affairs for NAMIC.
“Mitigation funding that provides flexibility, retrofits for aging housing stock, and increased adherence to modern building codes will both stabilize building costs and reduce back-end financial burdens to taxpayers,” said Grande in a Nov. 13 letter to U.S. House leaders. “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.”
