Takeaways:
- FEMA Review Council conclusions postponed to December 31
- NAIC seeks federal-state disaster relief coordination and funding answers
- Officials lobby for long-term solution to flood insurance program
NAIC, the association of state insurance regulators, is anticipating details on numerous changes at FEMA, the Federal Emergency Management Agency, that were expected to be announced December 11, according to Alexander Swindle, a NAIC senior advisor.
The FEMA Review Council on December 11 abruptly canceled a meeting and release of a report on its planned changes, as another NAIC official told the group at its Fall National Meeting in Hollywood, Florida. The report is postponed until December 31, according to Shana Oppenheim, assistant director of government affairs, financial policy and legislation at NAIC.
The Council, established by President Trump on January 24, is likely to propose elevating FEMA to a Cabinet-level agency, accelerating disaster aid to U.S. states and removing FEMA from the Congressional appropriations process, said Swindle, speaking at the NAIC meeting on December 10.
NFIP's 33rd short-term funding extension ended on October 1, the same day the federal government shutdown began, lasting until November 12. When the shutdown ended, NFIP got its 34th funding extension, to last through January 30, 2026. For NFIP, the shutdown stopped the program from issuing or renewing policies, which, as Swindle noted, created uncertainty for home buyers and lenders, disrupting 1,300 home sales per day.
NAIC, along with a coalition of insurance, lending, real estate and floodplain organizations, is pushing the Review Council and federal government to create a long-term funding authorization for the NFIP – before the current funding lapses. "This instability caused by the short term extensions really impacts the market," Swindle said.
Individual state insurance commissioners are waiting to hear what will happen with FEMA's funding, including the NFIP's current $26 billion deficit, according to Glen Mulready, Oklahoma insurance commissioner and chair of NAIC's FEMA Working Group. "It's one thing to pass responsibilities down to the states," he said. "It's another thing if that comes without funds."
Swindle said he expects the Review Council's report to be about 20 pages, down from 180 pages in earlier drafts, which had much more "rigid and specific guidelines." He added, "Now we're going to see something that's a little more forgiving and gives us more time to answer those questions."
According to Swindle, NAIC is also watching other FEMA issues including a temporary restraining order blocking the Trump Administration from redirecting $233 million in disaster relief funds away from 12 Democratic leading states, along with the
