NAHB Calls on Congressional Leaders to Extend NFIP, Avoid Government Shutdown

Legislative
Published
Contact: Scott Meyer
[email protected]
VP, Government Affairs
(202) 266-8144

In a letter sent today to House and Senate leaders, NAHB called on Congress to act quickly to extend the National Flood Insurance Program (NFIP) before it expires on Sept. 30 to avoid immediate and widespread impacts on property sales, home values and consumer confidence.

Any lapse of the NFIP will leave millions of Americans at risk and disrupt the purchase of flood insurance in more than 20,000 communities across the United States, impacting an estimated 1,300 property sales each day. If the program expires, this means the government will have no authority to provide new flood insurance contracts until it is reauthorized. This will delay all new home sales and insurance renewals for property owners who have federally backed mortgages for homes that lie in a Special Flood Hazard Area.

“What the housing market needs now is stability and certainty,” NAHB told lawmakers. “Uncertainty over whether the NFIP will lapse, coupled with the growing possibility of a government shutdown, may have a significant negative economic effect on home builders, home buyers and renters. To this end, we urge Congress to consider the effects of a government shutdown on federal programs that directly support the construction of new housing, help buyers or renters access housing, or provide federal permits that may be required for construction.”

While NAHB continues to aggressively pursue all avenues to extend the NFIP, builders need to be aware that even a short-term disruption to the NFIP will force delays — and in some cases, cancellations — to home sales that require the home owners to have federal flood insurance under the NFIP.

NAHB continues to hammer home the gravity of the situation to congressional leaders, and call on the leadership in both the House and Senate to quickly strike a deal to avoid a government shutdown that would harm an already fragile housing market.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Fall Leadership Meeting

Dec 16, 2025

AI Trends, Economic Outlook and More from 2025 Fall Leadership Meeting

NAHB members who were unable to join us in Denver this November for the leadership meetings at the 2025 Fall Leadership Meeting can watch some of the highlights, including a keynote presentation on AI's impact on home building, an economic update from NAHB's chief economist and more.

Trends | Housing Affordability

Dec 15, 2025

Homeownership Rate Inches Up

The latest homeownership rate rose to 65.3% in the third quarter of 2025, according to the Census’s Housing Vacancy Survey (HVS). However, despite this quarterly increase, the trend continues to reflect significant affordability challenges.

View all

Latest Economic News

Economics

Dec 16, 2025

Job Market Shows Signs of Cooling in November

In November, job growth slowed, and the unemployment rate rose to 4.6%, its highest level in four years. At the same time, job gains for the previous two months (August and September) were revised downward. The November’s jobs report indicates a cooling labor market as the economy heads into the final month of the year.

Economics

Dec 15, 2025

Builder Sentiment Inches Higher but Ends the Year in Negative Territory

Builder confidence inched higher to end the year but still remains well into negative territory as builders continue to grapple with rising construction costs, tariff and economic uncertainty, and many potential buyers remaining on the sidelines due to affordability concerns.

Economics

Dec 11, 2025

Homeownership Rate Inches Up to 65.3%

The latest homeownership rate rose to 65.3% in the third quarter of 2025, according to the Census’s Housing Vacancy Survey (HVS).