National Flood Insurance Program faces December expiration

The National Flood Insurance Program (NFIP) is facing another expiration deadline, with its current authority set to end at midnight on December 12. This follows a pattern of frequent short-term extensions; the Congressional Research Service reports 36 such extensions have occurred since the end of fiscal year 2017.

Managed by the Federal Emergency Management Agency (FEMA), the program provides nearly $1.3 trillion in coverage across approximately 4.5 million policies. While FEMA can use available funds to pay claims, its capacity to borrow from the U.S. Treasury has been significantly reduced, dropping from over $30 billion to just $1 billion.

Various industry groups, including the National Association of Realtors and several insurance associations, have lobbied for long-term reform and authorization. Flood insurance remains a requirement for mortgages in more than 20,000 communities nationwide.