UPDATE: On Saturday, December 21, President Biden signed a bill passed by both hourses of Congress that funds the government through March 14. The bill also reauthorized the NFIP through that date.
"It’s like deja vu all over again." — American philosopher, war hero, and member of the National Baseball Hall of Fame Lawrence Peter (aka "Yogi") Berra
Due to congressional inaction, the authority of the National Flood Insurance Program (NFIP) will expire at 11:59 pm tonight, Friday, December 20. Merry Christmas.
For years, the expiration of the NFIP’s authorization has been tied to the federal government’s fiscal year. When the fiscal year expires, so does the NFIP. Though the government’s fiscal year ends on September 30, Congress habitually enacts what are known as "continuing resolutions" authorizing the government to spend money temporarily until a budget is enacted. The current continuing resolution runs out tonight and the NFIP with it.
Until such time as Congress reauthorizes the program, the NFIP will be unable to issue or renew policies. It can, however, pay claims out of its reserve funds.
A proposed continuing resolution to fund the government until mid-March 2025 was defeated yesterday in the House of Representatives. News reports indicate that a vote on an alternative measure may occur this afternoon. If it passes, the Senate concurs, and President Joseph R. Biden, Jr. signs it, the government will remain operating and the NFIP will continue in business as usual. Otherwise, the NFIP and many other parts of the government will cease operating and remain that way until a funding bill is approved.
Big I New York members should advise affected clients accordingly.