Congress has ended a three-day partial shutdown by approving funding for the U.S. Department of Housing and Urban Development (HUD) and other agencies through Sept. 30, 2026.
Congress cleared the fiscal year 2026 spending package that was subsequently signed into law by President Trump, ending a brief partial government shutdown that began early Jan. 31. The House approved the measure Tuesday afternoon, following Senate passage late last week.
Key to the package was legislation that reauthorizes the National Flood Insurance Program (NFIP) through Sept. 30, 2026. The NFIP provides federally-backed flood insurance to millions of homeowners in high-risk areas, and is a cornerstone of property transactions in flood-prone regions. Without the NFIP in place, mortgage approvals, property closings, and real estate valuations would have been significantly delayed or constrained.
According to the National Association of Home Builders (NAHB), there are an estimated 1,300 sales that occur each day for properties that rely on the NFIP.
“Homeowners can’t afford another lapse in the NFIP,” said Sam Whitfield, senior vice president government relations for the American Property Casualty Insurance Association (APCIA) in a recent post in the Insurance Journal.
The NFIP is particularly important to the housing ecosystems in the Gulf Coast, Atlantic seaboard, and riverine floodplains, where properties often cannot be financed or closed without NFIP coverage. Sellers in these areas may experience longer listing times or lower offers, as prospective buyers weigh the risk and cost of alternative private insurance, which can be expensive or unavailable on short notice. During a lapse, the NFIP cannot issue new or renewal flood insurance policies until the program is reauthorized.
Past lapses in the NFIP — such as the 43-day lapse in late 2025 — stalled flood insurance issuance and renewals, which also slowed an estimated 1,300 home sales per day in flood-prone areas because federally-backed lenders require flood insurance for those closings.
In addition, the measure delivers full funding for major HUD housing programs, including Housing Choice Vouchers, fair housing, housing counseling, and the HOME and Community Development Block Grant programs. The funding supports families nationwide and provides communities with resources to maintain and strengthen neighborhoods.
“This funding provides the certainty and stability that families, home buyers and the housing market need,” said National Association of Realtors (NAR) EVP and Chief Advocacy Officer Shannon McGahn. “NAR thanks lawmakers on both sides of the aisle for coming together to fund HUD programs and reauthorize NFIP, ensuring Americans have access to the resources and protections they depend on.”
