Due to a dispute over border wall funding, President Trump failed to agree to a continuing resolution passed by the Senate that would have averted a partial government shutdown and kept the full federal government running through Feb. 8, 2019. House Republicans later passed a bill that included $5.7 billion funding for the wall, but the measure failed in the Senate.
As a result, roughly one-quarter of the government ran out of funding and was forced to close at 12:01 a.m. on Saturday, Dec. 22. The shutdown impacts several federal departments, including HUD, Agriculture, Commerce, Justice, Homeland Security, Interior, State, Transportation and Treasury.
One positive development and important victory for NAHB occurred when lawmakers agreed to extend funding for the National Flood Insurance Program (NFIP) for five months through May 31, 2019. NAHB pushed hard to make sure the program would not lapse and we continue to work with Congress to achieve a long-term reauthorization of the NFIP that will keep the program fiscally sound and let builders provide safe and affordable housing.
While the shutdown will affect housing and home builders, it is still unclear how long it will remain in effect. In most cases, the short-run impacts will be minor. A long-term shutdown, lasting several weeks or a month or more, could have significant impacts on mortgage accessibility and reduce housing demand.