National Flood Insurance Program: Reauthorization
This page provides information related to reauthorization of the National Flood Insurance Program (NFIP) to inform NFIP policyholders, industry partners, government officials, and other stakeholders.
Congress must periodically renew the NFIP’s statutory authority to operate. On March 23, 2018, the President signed legislation passed by Congress that extends the National Flood Insurance Program’s (NFIP’s) authorization to July 31, 2018.
Congress must now reauthorize the NFIP by no later than 11:59 pm on July 31, 2018.
FEMA and Congress have never failed to honor the flood insurance contracts in place with NFIP policyholders. In the unlikely event the NFIP’s authorization lapses, 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. Nationwide, the National Association of Realtors estimates that a lapse might impact approximately 40,000 home sale closings per month.
NFIP reauthorization is an opportunity for Congress to take bold steps to reduce the complexity of the program while transitioning it to a sounder financial framework. The level of damage from the 2017 hurricanes makes it abundantly clear that FEMA needs a holistic plan to ready the Nation for managing the cost of catastrophic flooding under the NFIP.