National Flood Insurance Program is Set to Expire Tuesday, Halting New Policies and Some Home Loans

COMFORT, TEXAS – JULY 04: Boerne Search and Rescue teams navigate upstream in an inflatable boat on the flooded Guadalupe River on July 4, 2025 in Comfort, Texas. Heavy rainfall caused flooding along the Guadalupe River in central Texas with multiple fatalities reported. (Photo by Eric Vryn/Getty Images)

Authorization for the largest residential flood insurance program in the U.S. is set to expire at the end of Tuesday. Millions rely on the National Flood Insurance Program for coverage required in high-risk areas. If Congress doesn’t pass a spending bill before midnight, the NFIP will freeze, affecting home sales and policy renewals. This could impact real estate transactions, especially in Florida and Texas. The program, created in 1968, has faced calls for reform due to issues with floodplain mapping and affordability. A recent bill aims to extend the program until November 2025, but advocates say long-term solutions are needed.