Shutdown Countdown: Flood Insurance in Jeopardy
September 30, 2025
With just hours remaining until current government funding expires after September 30, Congress is locked in a standoff over a continuing resolution (CR) that would extend funding through November 21. Both the House and Senate have voted down competing stopgap bills, leaving the path to avoid a shutdown increasingly narrow.
Why it matters: Without action, a full government shutdown will begin on October 1.
- The National Flood Insurance Program (NFIP) authorization will also lapse. CREFC and other trade organizations have urged Congress to act on a standalone extension, but action on the standalone is unlikely to garner the unanimous support necessary at this late stage.
- The NFIP expiration has been tied to government funding deadlines in recent years. Click here for an explanation of how past NFIP lapses have been handled.
- The House-passed short-term funding extension would maintain FY2025 spending levels and provide additional time for lawmakers to complete work on the FY2026 appropriations bills.
Where we stand as of today:
- President Trump met with Democratic and Republican Congressional leadership on Monday, but they did not come to an agreement. This came after Trump had cancelled a scheduled meeting last week with Minority Leaders Chuck Schumer (D-NY) and Hakeem Jeffries (D-NY).
- House Action: House Republicans passed a clean CR on Sept. 19 by a 217–212 vote. Two Republicans opposed, while one Democrat crossed over in support. Speaker Mike Johnson (R-LA) does not plan to bring the House back this week, which adds pressure to the Senate to pass the clean CR.
- Senate Action: The Senate voted down the House-passed CR 44–48, with Sens. Lisa Murkowski (R-AK) and Rand Paul (R-KY) joining Democrats in opposition, and Sen. John Fetterman (D-PA) voting in favor. Democrats’ alternative CR also failed 47–45, falling short of the 60 votes needed to advance.
- Democrats’ Posture: Party leaders remain opposed to a short-term deal unless it restores Medicaid funding cuts and extends ACA premium subsidies. Notably, Sen. Fetterman has broken ranks to support the GOP’s CR.
White House Position: The Administration initially pressed for a longer stopgap through January but is supportive of a shorter Nov. 21 measure as it is the most viable option to keep the government funded.
- The White House Office of Budget and Management directed agencies to plan for reductions in force if the government does indeed shutdown on Wednesday.
- Democrats are skeptical of the threat. They have pointed to the firings already conducted and recent re-hirings of fired workers as evidence the Administration will not follow through.
What’s next: The Senate still needs seven Democratic votes to reach the 60-vote threshold on a clean CR, a tall order with just hours remaining.
Contact David McCarthy (Dmccarthy@crefc.org) or James Montfort (jmontfort@crefc.org) with any questions.