Post updated at 8:31 a.m. on Friday, May 31
The National Flood Insurance Program (NFIP) received a last-minute extension Thursday evening, preventing the program from lapsing.
The Advocate reports Congress is expected to pass yet another extension--the 12th in two years--on Monday when it returns from its recess. The anticipated extension set for Monday would extend the program to September as Congress discusses a long-term solution.
The NFIP covers 5 million policyholders in flood-prone areas.
The program was set to expire at 11:59 p.m. on Friday, May 31, and two prior attempts to extend the program failed. The Senate had approved two bills to extend the program: the first is part of the disaster relief legislative package that would extend the NFIP through Sept. 30, and the second would provide a two-week extension.
Two prior attempts to gain unanimous consent were block by representatives Chip Roy (R-Texas), Thomas Ma
The National Association of Home Builders states that Congress requires all properties with the 100-year floodplain purchase with a federally-backed mortgage to carry flood insurance. A short-term shutdown means insurers and insurance agents cannot sell or renew flood insurance policies back by the program because of lack of government funding. The results could mean new or renewing federal flood insurance policies not be written during the lapse.
The U.S. House of Representatives passed H.R. 2578 earlier in April, which would have extended the NFIP’s authorization to September 30.
“The NFIP plays an important role in disaster preparedness and resiliency by providing flood maps, setting standards for floodplain management, and investing in mitigation for our homes, businesses, and infrastructure. According to the Federal Emergency Management Agency, everyone is at risk of flooding,” said Maxine Waters, Congresswoman Maxine Waters (D-CA) and Chairwoman of the House Financial Services Committee. “That means that this is not just a coastal issue—we all have an interest in ensuring a strong National Flood Insurance Program.