NAHMA Update: Government Shutdown and Contingency Plans for Lapse in Appropriations for HUD and USDA

• By: admin
• On: 10/01/2025 15:13:51
• In: NAHMA News

As of midnight, the federal government has officially entered a shutdown due to Congress' failure to pass either appropriations bills or a continuing resolution to maintain government operations. In Congress, the U.S. Senate remains in session, with some Senators working hard to find an agreement to end the shutdown.  The U.S. House of Representatives is not scheduled to reconvene until next week (on Oct. 6). The best-case scenario is for a short-term shutdown with disruption lasting just this week and resolved over the weekend.  However, there is a strong possibility of this shutdown extending longer and approaching the record 35-day closure of Dec. 2018– Jan. 2019.

We want to provide you with an update on what this means for the programs you operate or rely on daily.  First, The Congressional Budget Office estimates 750,000 workers are furloughed daily, with a $400 million daily cost in deferred compensation. Attached to this email., you will find the Contingency Plans for Lapse in Appropriations for HUD and USDA. Since NAHMA members work in a variety of programs, please consult the plans' relevant sections. Prior to shut down, NAHMA met with HUD-MFH leadership, and a key takeaway is HUD had sufficient funds to continue payments for PBRA programs through November. We did not have an opportunity to meet with RD-staff, but industry estimates are that Section 521 RA for existing contracts will continue into late October. Finally, the National Flood Insurance Program (NFIP) has also expired, and FEMA can only continue paying claims while existing funds remain.

We will continue to closely monitor developments in Congress and provide updates as new information becomes available. If you are experiencing specific impacts due to the shutdown, please don't hesitate to reach out.
 

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Larry Keys, Vice President of Government Affairs
National Affordable Housing Management Association
400 N. Columbus St., Suite 203, Alexandria, VA 22314