A federal flood insurance program covering nearly 500,000 Louisianans is on hold after Congress let it expire Tuesday night.
It’s part of the broader federal government shutdown after lawmakers failed to agree on a budget.
Louisiana has the highest repetitive flood losses in the country. Since the creation of the National Flood Insurance Program in 1968, as an insurer of last resort, more than $20 billion has been paid out to policyholders in the state.
New policies can’t be issued until the program resumes, even in flood-prone areas where flood insurance is required to purchase a home, like much of Louisiana.
Republican U.S. Sen. Bill Cassidy has long advocated for the program to be made permanent, and told Senate colleagues last week that letting it lapse at the height of hurricane season would be irresponsible.
Real estate associations say the lapse in coverage will hamstring thousands of home sales.
CORRECTION: An earlier version of this story incorrectly stated that those enrolled in NFIP with contracts up for renewal would not be able to continue their coverage. As long as the program remains lapsed and the federal government is shut down, those up for renewal can keep paying and not lose coverage.
