Trump admin warns millions could lose flood insurance if Democrats block bill

EXCLUSIVE: As the Sept. 30 government funding deadline looms, the Trump administration is warning that millions of Americans could lose flood insurance coverage if Democrats refuse to back a House-passed spending bill that also extends the National Flood Insurance Program (NFIP).

The White House supports the continuing resolution (CR) approved by House Republicans, which would avert a shutdown and reauthorize the NFIP. 

Administration officials said they worked to ensure NFIP was part of the current funding package, reflecting what they call the urgency of protecting millions of policyholders during hurricane season.

Democrats have said they will not support the measure, citing broader spending disputes. Trump administration officials argue the standoff puts homeowners, the housing market and disaster recovery funds at risk just as peak storm season arrives.

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“In an exclusive statement to Fox News Digital, a White House official said: ‘The NFIP is a vital program utilized by millions of Americans, and it’s not a hard call to extend it – which is exactly why the administration supports the House-passed CR that would do so. Unfortunately, Democrats are happy to shut down the government and hurt the many thousands of Americans who rely on this program in the process.’”

According to administration figures reviewed by Fox News Digital, a lapse in NFIP authorization could disrupt about 1,300 property sales every day. That’s roughly 40,000 closings in a single month, all in areas where flood insurance is required to secure a mortgage.

More than 400,000 policies are set to expire in October. Officials say about 152,000 of those have been prepaid, but more than 250,000 households could still lose coverage if the program stalls.

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White House officials warn of flood insurance lapses if Democrats block a spending bill. (Getty Images)

Administration officials also pointed to October 2024 as a warning sign. That month saw more than 427,000 new or renewed policies. Roughly 41,000 homeowners bought new policies while about 33,000 dropped coverage, leaving a net gain of nearly 9,000….