In just the past year, historic floods have claimed hundreds of lives and destroyed communities — from deadly Texas downpours and Appalachian hurricane swells to record-breaking rains in Chicago, New Mexico and the Midwest. Now, with the National Flood Insurance Program (NFIP) expired as of midnight October 1 and a government shutdown underway, 4.7 million people are without coverage. Americans are left without coverage, fueling unanswered questions, mounting fears and urgent calls for Congress to act.
The program
The NFIP is a federally funded organization managed by Federal Emergency Management Agency (FEMA), insuring at-risk communities and managing floodplains regulations. FEMA is responsible for implementing zoning and building standards to mediate risk, and cover individuals, businesses and communities. But as Congress failed to extend the program before its deadline, millions suddenly lost their coverage.
The program began in 1968, through the National Flood Insurance Act to create a standard of affordability in the market that private insurers weren’t offering, and create floodplain regulation. Since then, congress has passed 33 extensions of the program, as it requires perpetual analysis for increased or decreased spending. There are both long and short term extensions possible given previous legislation.
Allocation for the program from congress has lapsed 6 previous times, and 2017 marked the end of the last long-term authorization, making the program more consistently volatile. The home market suffers at an exponential rate as well, as a lack of insurance in at-risk flood zones keeps away prospective buyers and stops renters from re-upping their leases. In fact, mortgage lenders in at-risk states like Texas, Florida, North Carolina and many more require insurance to offer a loan, stunting any new buying before it can even begin.
Government shut down
The NFIP is already in debt, with recent reports putting the number at $22.525 billion. However, as a government program their reach and support is necessary for the survival and safety of the national population. Therefore, during a shutdown the program is traditionally warranted to borrow up to $30.4 billion from the treasury to supplement the lack of income. However, with the lapse aligning exactly with the shutdown, the allowance has been reduced to just $1 billion.
2025 is already on track to break flood records from years previously, making the NFIP an essential service at this time. And with this deadly year behind us, the United States cannot afford to operate without flood insurance at this time.
The future
Climate change has perpetuated these weather events, and their continued impact with increased devastation can only worsen. The NFIP is an essential service, kneecapped by the government’s inability to come to an agreement that can only bring further damage. FEMA has introduced a new risk rating system, meant to more accurately predict which areas are the most vulnerable, though it may come at an increased cost.
Increasingly dangerous climate conditions, outdated and insecure infrastructure, and a lack of urgency at the necessity of the program are all at play to stop the NFIP from being as effective as it once was. As floodwaters rise and protections recede, the question is no longer if communities will be left vulnerable, but how long Congress will let them wait.
