September 30, 2026
The National Flood Insurance Program expires at midnight on September 30, 2026. If Congress does not reauthorize it, the program loses the authority to issue new policies. Existing policies continue until they expire. New policies, renewals, and increases in coverage stop.
4.6 million policies. $1.3 trillion in coverage. 22,700 communities. All dependent on Congress acting by September 30.
The NFIP covers 4.6 million properties across more than 22,700 communities in 56 states and territories, providing nearly $1.3 trillion in coverage. It is the only flood insurance option for most American homeowners because private flood insurance is either unavailable or unaffordable in the highest-risk areas.
40,000 Closings Per Month
Federally backed mortgages in Special Flood Hazard Areas require the borrower to carry flood insurance. Without the NFIP issuing new policies, these mortgages cannot close. The National Association of Realtors estimates that a lapse would freeze approximately 1,300 property sales per day, roughly 40,000 home closings per month.
That is not just flood-zone homeowners. It is the entire real estate market in communities where flood risk exists, which is most of the country. First Street Foundation estimates that 14.6 million properties face substantial flood risk, 68% more than FEMA’s official flood maps show.
The Maps Are Wrong
FEMA flood maps, which determine who must carry flood insurance, are widely recognized as outdated. They do not account for climate-driven changes in rainfall patterns, sea level rise, or urban development that redirects stormwater. Properties outside the official flood zone flood regularly. Properties inside it are mapped based on data that may be decades old.
First Street’s analysis found that the actual number of at-risk properties is 68% higher than FEMA maps indicate. Millions of homeowners who do not know they are at flood risk have no insurance because FEMA’s maps told them they did not need it.
Congress Has Let It Lapse Before
The NFIP has been reauthorized through short-term extensions 31 times since 2017. During previous lapses, new policies stopped, claims processing was delayed, and real estate transactions in flood zones were disrupted. Each lapse was resolved retroactively, but the uncertainty damaged the housing market and left homeowners in limbo.
The program has been operating on temporary extensions rather than a long-term reauthorization for years. Congress has known the expiration date since the last extension. The uncertainty is a policy choice, not a surprise.
Read more on the Environment hub and the PFAS water rollback brief.