An Update on the Government Shutdown

As you may have seen in the news, the federal government shut down at midnight on Wednesday, October 1, following the expiration of the fiscal year without a new funding agreement. This situation remains fluid, and we are closely monitoring developments to keep you informed.

Please note that circumstances may change rapidly, and we will continue to provide updates as new information becomes available.

At this point, here is what we know about how the shutdown could affect you as a property manager and your clients:

National Flood Insurance Program (NFIP)

• The NFIP has officially lapsed. FEMA cannot issue new flood insurance policies or renew existing ones during the shutdown.
• Existing policies remain valid until their expiration date, and claims will continue to be processed—though FEMA’s borrowing authority has been reduced from $30.4 billion to just $1 billion, which may delay payments if a major disaster occurs.
• Real estate transactions in flood-prone areas may be delayed or canceled due to the inability to secure required flood insurance.
• NARPM has joined with other 15 other organizations in urging Congress to extend the National Flood Insurance Program (NFIP).

Housing Choice Voucher Program (Section 8)

• Payments to housing authorities are expected to continue through mid-November 2025, using previously obligated funds. Housing authorities also have reserves that could possibly be used after that point.
• Authorities may be able to tap into reserves beyond that point if the shutdown persists.
  However, new voucher issuances and certain administrative functions may be delayed due to HUD staff furloughs.

What You Can Do

• Communicate proactively with clients, tenants, and owners about potential delays or disruptions.
• Review flood insurance policies and advise clients on private market alternatives if needed.
• Monitor voucher payments and prepare contingency plans in case of funding delays.
• Stay informed through NARPM updates and official agency communications.

We understand the uncertainty this shutdown creates for your operations and your clients. NARPM is actively advocating for swift resolution and will continue to provide updates as new information becomes available.