Congress has until midnight this coming Saturday, September 30, to fund the federal government, or it will shut down when the new federal fiscal year begins on October 1. While Congress is supposed to pass 12 individual spending bills to fund all federal government departments and agencies, its appropriations process has not followed regular order since 1996. Instead, Congress often passes short-term funding measures called continuing resolutions (CRs), to allow the federal government to continue to operate on a short-term basis.
At present, Congress is divided, with a Republican-led House and a Democratic-led Senate, making it difficult for the chambers to agree on a way forward. There is also internal disagreement within the House Republican caucus, complicating House GOP efforts to pass a CR that could also pass in the Senate.
A federal government shutdown would have widespread consequences, but, as Speaker Kevin McCarthy (R-CA) continues to seek agreement within his caucus to pass a CR and avoid a shutdown, PIA remains focused on issues important to independent agents. Fortunately, crop insurance is authorized through the Federal Crop Insurance Act, and a shutdown would not impact its operations. However, individual agencies and staff within the Department of Agriculture will be affected because many staff may be prohibited from fulfilling their daily responsibilities. Plus, a shutdown would likely further delay the reauthorization of the Farm Bill.
Unfortunately, the National Flood Insurance Program (NFIP) will expire at the end of the week without action by Congress. Unlike crop insurance, the NFIP would be immediately affected by a shutdown. In August, PIA sent a letter to congressional leadership urging an extension of the program, and we have issued an action alert that PIA members can use to make their voices heard.
If Congress allows the NFIP to lapse, consumers will be unable to renew existing flood insurance policies or purchase new ones. During a lapse, consumers engaged in real estate transactions may experience disruptions, with sales of homes in mandatory purchase zones most likely to be substantially delayed. If flooding events occur during a lapse, claims may not be processed until the program is reauthorized. Prior NFIP lapses are estimated to have caused disruption in over one thousand home sales per day, and the longer the lapse, the greater and more widespread the disruption.
Earlier this month, PIA created an action alert for PIA members to urge their elected leaders to fund the government to prevent a lapse in the NFIP. If you have not already done so, send a message to your members of Congress today, urging them to reauthorize the NFIP before it expires on Saturday. Click here to encourage your House member and Senators to support an extension of the NFIP today!