The potential for a lapse in funding for the National Flood Insurance Program increased today as the House failed to pass two separate measures that would have temporarily extended the program, which is currently set to expire at midnight on Friday. The bills—a disaster relief bill and a separate, standalone two-week extension measure both passed by the Senate last week—were denied a voice vote on the House floor.
The House is scheduled to meet again on Thursday afternoon and may make another attempt to pass the bills. Additionally, lawmakers have signaled that should the program lapse, they will reinstate it retroactively once authorization is obtained.
ABA encourages bankers to plan for a potential lapse by reading an online feature from the ABA Banking Journal about what to do before, during and after a lapse occurs. The article includes links to agency guidance on operations during an NFIP lapse, as well as steps to take to prepare and respond to a lapse in the NFIP.