Trump admin warns hundreds of thousands might lose flood insurance coverage if Democrats block invoice

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EXCLUSIVE: Because the Sept. 30 government funding deadline looms , the Trump administration is warning that hundreds of thousands of People might lose flood insurance coverage protection if Democrats refuse to again a Home-passed spending invoice that additionally extends the Nationwide Flood Insurance coverage Program (NFIP).

The White Home helps the persevering with decision (CR) authorized by House Republicans , which might avert a shutdown and reauthorize the NFIP.

Administration officers stated they labored to make sure NFIP was half of the present funding bundle, reflecting what they name the urgency of defending hundreds of thousands of policyholders throughout hurricane season.

Democrats have stated they won't help the measure, citing broader spending disputes. Trump administration officers argue the standoff places householders, the housing market and catastrophe restoration funds in danger simply as peak storm season arrives .

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Sen. Chuck Schumer, D-N.Y., speaks throughout a information convention on Capitol Hill as Congress faces a funding deadline and flood insurance coverage dangers. (Daniel Heuer/Bloomberg through Getty Photographs)

"In an unique assertion to Fox Information Digital, a White Home official stated: ‘The NFIP is an important program utilized by hundreds of thousands of People, and it’s not a tough name to increase it – which is precisely why the administration helps the Home-passed CR that will achieve this. Sadly, Democrats are comfortable to close down the federal government and damage the various 1000's of People who depend on this program within the course of.’"

In keeping with administration figures reviewed by Fox Information Digital, a lapse in NFIP authorization might disrupt about 1,300 property gross sales day by day. That’s roughly 40,000 closings in a single month, all in areas where flood insurance is required to safe a mortgage.

Greater than 400,000 insurance policies are set to run out in October. Officers say about 152,000 of these have been pay as you go, however greater than 250,000 households might nonetheless lose protection if this system stalls.

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<source media="(min-width: 768px) and (max-width: 1023px)" srcset="https://a57.foxnews.com/static.foxnews.com/foxnews.com/content/uploads/2025/09/672/378/white-house-warns-flood-insurance-risked-by-democrats.jpg?ve=1&tl=1, https://a57.foxnews.com/static.foxnews.com/foxnews.com/content/uploads/2025/09/1344/756/white-house-warns-flood-insurance-risked-by-democrats.jpg?ve=1&tl=1 2x" height="378" width="672"><source media="(min-width: 1024px) and (max-width: 1279px)" srcset="https://a57.foxnews.com/static.foxnews.com/foxnews.com/content/uploads/2025/09/931/523/white-house-warns-flood-insurance-risked-by-democrats.jpg?ve=1&tl=1, https://a57.foxnews.com/static.foxnews.com/foxnews.com/content/uploads/2025/09/1862/1046/white-house-warns-flood-insurance-risked-by-democrats.jpg?ve=1&tl=1 2x" height="523" width="931"> White Home officers warn of flood insurance coverage lapses if Democrats block a spending invoice. (Getty Photographs)

Administration officers additionally pointed to October 2024 as a warning signal. That month noticed greater than 427,000 new or renewed insurance policies. Roughly 41,000 householders purchased new insurance policies whereas about 33,000 dropped protection, leaving a internet acquire of almost 9,000. Officers warn that related development this yr might collapse if NFIP lapses.

Administration officers instructed Fox Information Digital that FEMA currently has $2.6 billion obtainable to pay legitimate claims, together with $1.5 billion within the Nationwide Flood Insurance coverage Fund and $1.1 billion in reserves. However they warned the company could be unable to borrow extra cash from the Treasury if a serious catastrophe exceeded these reserves, a situation they described as "harmful and avoidable."

The Nationwide Affiliation of Dwelling Builders (NAHB) echoed these considerations.

"Previous disruptions of the NFIP have brought on quick and widespread damaging impacts on property gross sales, dwelling values and client confidence," NAHB stated in an unique assertion to Fox Information Digital.

Home Minority Chief Hakeem Jeffries speaks throughout a information convention on Capitol Hill in Washington. (Nathan Posner/Anadolu/Getty Photographs)

"Dwelling gross sales would stop in areas the place flood insurance coverage is obligatory to be able to get hold of a mortgage. What the housing market wants now could be stability and certainty. NAHB calls upon the Home to behave rapidly to proceed to fund the operations of the federal authorities together with the extension of the NFIP."

The NFIP has a protracted historical past of stopgap extensions. Since 2017, Congress has reauthorized this system greater than 30 occasions, typically via short-term measures. Lawmakers have sometimes made protection retroactive to forestall everlasting gaps, however even temporary lapses have stalled actual property closings and left householders in limbo. This system at present serves about 4.5 million policyholders nationwide.

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Until lawmakers strike a deal, FEMA will likely be barred from promoting or renewing flood insurance coverage insurance policies beginning Oct. 1, a lapse that would go away hundreds of thousands of house owners in limbo as Washington hurtles towards a shutdown. Administration officers argue the chance is particularly acute this yr as hurricane season continues.