Government Shutdown Causes NFIP Lapse, Freezing Flood Insurance Nationwide
SmarterSafer Coalition Urges the Senate Banking Committee to Hold an Immediate Hearing
Washington, DC – October 16, 2025 – The SmarterSafer Coalition (SmarterSafer) today called on Congress to take swift action to restore the National Insurance Program (NFIP), which expired on October 1, 2025, following the federal government shutdown. The lapse has resulted in the immediate freeze of all new and renewing NFIP flood insurance policies nationwide.
Without congressional action, 1,300 property sales per day and about 40,000 closings per month would be impacted, according to the National Association of Realtors (NAR). The NFIP’s 4.7 million policyholders are especially at risk when considering they are facing a potential lapse in coverage during the peak of the Atlantic hurricane season.
“Communities can’t afford for Washington to play politics with disaster protection,” said Chris Brown, Executive Director of the SmarterSafer Coalition. “Congress must move past short-term fixes and deliver a stable, forward-looking flood insurance program that strengthens resilience and saves taxpayer dollars.”
With intensifying storms, rising costs and over 30 short-term reauthorizations since 2017, Congress needs to enact meaningful reform to ensure the program’s long-term solvency. The NFIP and federal flood management systems need reform that prioritizes affordability, pre-disaster mitigation and risk-transfer strategies that expand the role of private insurers.
SmarterSafer urges the Senate Banking Committee to examine the impacts of the NFIP and act swiftly to reauthorize the program. Additionally, we continue to advocate for Congress to come together on a long-term bipartisan solution that promotes risk-reduction and resilience investments that protect communities and reduce the fiscal burden on taxpayers.
About SmarterSafer
SmarterSafer.org is a national coalition that is made up of a diverse chorus of voices united in favor of environmentally responsible, fiscally sound approaches to natural catastrophe policy that promote public safety. The coalition believes that the Federal government has a role in encouraging and helping homeowners to undertake mitigation efforts to safeguard their homes against natural disasters. At the same time, the coalition opposes measures that put people’s lives at risk at the expense of taxpayers. Measures such as subsidizing artificially low rates for homeowners’ insurance policies help to encourage construction in environmentally sensitive and unsafe areas. The coalition is working to ensure that Congress does not incentivize people to live in harm’s way in places prone to hurricanes and floods.
For more information on the SmarterSafer Coalition, please contact dalena@rokksolutions.com.
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