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ust hours after the federal government halted operations over budget disputes, Louisiana homebuyers are already facing setbacks. Realtor Andrea Tyler of At Home Realty Group had a closing scheduled for a newly built house in Chalmette next week. The property sits in a flood‑prone zone, and the buyers rely on FEMA’s National Flood Insurance Program (NFIP) to complete the purchase.

    Since the shutdown began, the NFIP has been unable to issue new policies. The program’s authority expired on September 30, and FEMA can neither renew existing coverage nor create new contracts until Congress restores funding. Tyler explained that she had to inform her client that the closing might be delayed.

    Other federal housing initiatives are also on hold. “During the shutdown, expect delays in appraisals and federal loans,” Tyler warned. Louisiana, home to more than 434,000 NFIP policyholders—ranking third nationwide behind Florida and Texas—has the highest proportion of homes insured through the program, with over 20 % of residences relying on federal flood coverage.

    As lawmakers debate a resolution, local agents fear that prolonged delays will add stress to an already difficult buying process. “A seller doesn’t want to close and then wait weeks for the government to resume normal operations,” Tyler said, noting that buyers may lose momentum after investing in inspections and other pre‑closing steps.

    Some policyholders worry that the shutdown could jeopardize coverage during the peak of hurricane season. Jennifer Clements, sales manager for Dan Burghardt Insurance and president of the Professional Insurance Agents of Louisiana, reassured that existing policies remain active. “If something happens, you file a claim as usual,” she said. Claims processing continues to be funded, though policyholders face restrictions on adjusting coverage without increasing premiums.

    Both Clements and Tyler suggested that private flood insurance could serve as a stop‑gap for buyers during the shutdown, albeit at a higher cost than NFIP rates. Once the government reopens and the program is fully funded again, buyers can transition back to NFIP coverage.

    The situation underscores how a federal shutdown can ripple through local real estate markets, especially in flood‑prone states like Louisiana.