WASHINGTON—Although Congress passed—and the president signed—an extension of the National Flood Insurance Program (NFIP) to May 31 before it was set to lapse in late December, FEMA has notified insurers and insurance agents that it is not able to sell or renew policies backed by the NFIP due to the partial government shutdown.
For that reason, NAFCU said it is urging congressional leaders to not let the NFIP lapse as it would "leave millions of Americans at risk and could create disruptions and uncertainty."
Several lawmakers last week called on FEMA to reverse its decision to not sell or renew policies , with incoming House Financial Services Committee Chairwoman Maxine Waters (D-CA) describing it as a "harmful and incorrect interpretation of its authority" and noting the importance of providing flood insurance to families.