Congress Fails to Address NFIP before Break, Program Lapses

Congress adjourned today until April 12th, failing to agree on an unemployment benefits bill that included a provision with an extension of the National Flood Insurance Program (NFIP). As a result, the program is set to expired on Sunday, March 28th at midnight.

Published on March 29, 2010

Insurance agents will now not be able to provide new or renewal flood insurance policies, required by lenders to close on some real estate sales through the federal insurance program.

Republican Senator Tom Coburn from Oklahoma blocked the Senate from voting on the bill to extend the jobless benefits arguing that to do so would add to the deficit. Democrats argued that the measure qualified as emergency spending.

At the end of February, a similar lapse occurred and the NFIP was closed for several days until Congress renewed it on March 2. However this time the lapse will be longer as Congress will not return to session until April 12.