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FEMA won't sell, renew NFIP policies during shutdown
Although Congress passed – and the president signed – an extension of the National Flood Insurance Program (NFIP) to May 31 before it was set to lapse last week, FEMA has notified insurers and insurance agents that it is not able to sell or renew policies backed by the NFIP due to the partial government shutdown.
In addition, the Senate yesterday announced that it will next gavel in for legislative business Wednesday, essentially ensuring the shutdown will last at least 12 days. The Senate previously passed a bipartisan deal to keep the government funded through Feb. 8. However, the House last week passed a government funding deal that includes $5.7 billion requested by President Donald Trump for his proposed wall along the border of Mexico. The president said he will not sign a bill unless it provides funding for this wall.
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."
Several lawmakers on Thursday called on FEMA to reverse its decision, with incoming House Financial Services Committee Chairwoman Maxine Waters, D-Calif., describing it as a "harmful and incorrect interpretation of its authority" and noting the importance of providing flood insurance to families.
While much of the government remains open, the departments of Treasury, Housing and Urban Development, Justice, Transportation, Interior, Homeland Security and State, among others, have been forced to shut down. As independent agencies, the NCUA and Bureau of Consumer Financial Protection are not impacted by the shutdown.
NAFCU will keep credit unions updated on government funding discussions, as well as impacts of the shutdown on the NFIP.