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

Workforce Development

Oct 10, 2025

HBI Report Reveals Economic Impact of Labor Shortages on Housing Production

The 2025 Fall Labor Market Report reveals the true cost of too few workers in the residential construction industry, and provides insights on generational and demographic shifts in the workforce.

Safety

Oct 10, 2025

Fighting the Stigma of Mental Health in Construction

Friday, Oct. 10, is World Mental Health Day, an annual observance from the World Health Organization to raise awareness of mental health issues around the world and to mobilize efforts in support of mental health.

View all

Latest Economic News

Economics

Oct 10, 2025

Vinyl Surpasses Stucco as Most Used Principal Exterior Wall Material

In 2024, vinyl siding was the most used principal exterior wall material for homes started. It holds just over a quarter share of homes, slightly surpassing stucco for the first time since 2018.

Economics

Oct 09, 2025

Remodeling Market Sentiment Improves in Third Quarter

In the third quarter of 2025, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 60, up one point compared to the previous quarter. With the reading of 60, the RMI remains solidly in positive territory above 50, but lower than it had been at any time from 2021 through 2024.

Economics

Oct 08, 2025

Refinancing Activity Surges in September

Refinancing activity surged in September, marking the largest monthly increase since the COVID-era of ultra-low interest rates. This increase followed mortgage rates dropping below 6.5% for the first time since October 2024 in anticipation of rate cuts that ultimately materialized. ­­