The National Flood Insurance Program was reauthorized March 23 when President Donald Trump signed into law legislation that extends the program through July 31. The program must be reauthorized periodically by Congress in order to continue functioning, according to the Federal Emergency Management Agency, which runs NFIP.
Flood damage costs Americans $8.2 billion each year on average, and just 1 inch of water inside a building can cause about $27,000 in damage, according to a FEMA press release.
According to FEMA, failure to renew the program, which has suffered budgetary shortfalls in recent years, could cause a lapse in as many as 40,000 home sale closings per month.
Lizzie Litzow, communications director for the office of U.S. Representative Mike McCaul, said the congressman is pleased that the reauthorization has been passed, but he his concerned about the future of the program, which will need to be renewed again in July.
“McCaul believes what is truly needed, and what Congress should focus on, are common-sense structural reforms to the program,” Litzow said.
For more information about NFIP, read our coverage here: Need Flood Insurance? What to know about managing your risk