On December 2, the Congressional Research Service updated its overview of potential consequences if the National Flood Insurance Program (NFIP) is not reauthorized by January 30, 2026. The NFIP, which is the primary source of flood insurance for residential properties in the U.S., covers 4.6 million policies totaling $1.3 trillion. The report stated that if Congress does not act, the authority to issue new flood insurance contracts would expire, and the NFIP’s borrowing authority from Treasury would drop from over $30 billion to $1 billion, though existing policies would remain valid through their one-year terms. The Federal Emergency Management Agency would continue to pay claims as premium funds allow, but delays could occur. During the most recent government shutdown, the NFIP lapsed for 43 days, prompting some lenders to suspend flood insurance requirements for homebuyers, which impacted housing markets in certain states. The lapse ended when Congress retroactively reauthorized the NFIP to September 30.