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FEMA reverses decision, will sell NFIP policies during shutdown
FEMA on Friday reversed its decision to not sell or renew policies backed by the National Flood Insurance Program (NFIP) after a number of lawmakers urged the agency to reconsider.
The White House Office of Budget and Management was involved in the decision to restart selling the NFIP-backed policies.
Funding for the NFIP was set to expire Dec. 21 along with funding for some government agencies. However, Congress passed and the president signed an extension of the program to May 31 before it could lapse.
NAFCU had urged congressional leaders to not let the NFIP lapse as it would "leave millions of Americans at risk and could create disruptions and uncertainty."
Incoming House Financial Services Committee Chairwoman Maxine Waters, D-Calif., described FEMA's original decision as a "harmful and incorrect interpretation of its authority" and noted the importance of providing flood insurance to families.
Congress and the president have yet to come to an agreement on a funding bill to end the partial government shutdown.