Live Updates: Federal Government Shutdown Ends

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By NAA Government Affairs |

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10 minute read

Final Update: What's Next

November 18, 2025: Read more about the shutdown deal and what comes next for funding for key federal housing programs with NAA's latest appropriations update.

Government Shutdown Ends

November 13, 2025: Last night, President Trump signed a bill -- passed by both chambers of Congress -- to end the prolonged federal government shutdown. The final deal funds some of the government through the end of the year, and other agencies and programs through January 30, 2026.

Senate Reaches Tentative Deal

November 10, 2025: On November 9, 2025, eight Democratic U.S. Senators joined Republicans (60-40) to advance a plan to end the government shutdown. The proposal - which still needs to pass the U.S. House and then be signed by the President - would fund some federal agencies and programs through the end of the year, and others through January 30, 2026. The plan would also rehire government workers terminated during the shutdown and ensure back pay for furloughed employees.

Latest Update: National Flood Insurance Program Faces Impacts

October 28, 2025: As the shutdown enters its fourth week and closes in on a second missed pay period for federal workers, there are several changing realities for government programs -- especially the National Flood Insurance Program (NFIP). Administered by the Federal Emergency Management Agency (FEMA), this program provides flood insurance to property owners in participating communities that adopt and enforce floodplain management regulations. Its main goals are to offer affordable flood insurance, reduce future flood damages and lower federal disaster relief costs.

In light of the shutdown, 

  • Existing policies remain active: If you had an NFIP policy in place on or before September 30, 2025, it remains in effect. Claims on these active policies will be paid only as long as FEMA has funds. 

  • No new policies can be issued: Homebuyers in high-risk flood areas who require federal flood insurance for a mortgage may see their closings delayed. This has created a problem for many buyers since the shutdown began. 

  • No renewals or coverage increases: Policyholders with expired policies cannot renew them and no one can increase their coverage limits during the lapse. 

  • Changes are frozen: Any policy changes, cancellations or endorsements are on hold until the shutdown ends.  

  • Borrowing power reduced: The program also loses its ability to borrow, with its authority dropping from $30.4 billion to just $1 billion.

As the shutdown continues, FEMA will continue to lose available cash on hand for all events, but notably for NFIP claims. As of late 2025, the precise "cash on hand" for FEMA is dynamic, but data show the Disaster Relief Fund (DRF) started the fiscal year with a balance of approximately $18.36 billion and had $51.7 billion in new appropriations, for a total of about $70.1 billion in budgetary resources. However, a significant portion of this has already been obligated, with the agency reporting $52 billion obligated (74% of the total) as of the latest available data. 

HUD Delays HOME Landlord-Tenant Requirements

October 23, 2025: Due to the uncertainty surrounding the resolution of the shutdown, the implementation of the U.S. Department of Housing and Urban Development's (HUD) HOME Investment Partnerships Program: Updates & Streamlining Final Rule - which would impose ten new federally-mandated landlord-tenant requirements for covered housing - has been pushed back further to April 30, 2026. Read more.

Rural Housing Impacts

October 15, 2025: Based on recent information, rural housing rental assistance payments administered through the U.S. Department of Agriculture (USDA) are continuing. Advanced funding should allow them to continue through December. Closings are processing if a firm commitment had been established prior to Oct. 1, 2025. Vouchers remain uncertain as funding has run out.

Reduction in Force Impacts HUD

October 15, 2025: Today, a federal judge in California halted the administration's Reduction in Force (RIF) efforts. The lawsuit, brought by the American Federation of Government Employees, (AFGE) argues that the RIF layoffs are unlawful.

October 13, 2025: As of Friday, Oct. 10, the Office of Management and Budget (OMB) has begun issuing Reduction in Force (RIF) notices to lay off federal employees across agencies.

Widespread reporting indicates that this reduction has impacted the U.S. Department of Housing and Urban Development (HUD). Materials from a court filing estimate that 442 HUD employees have been impacted. Over the weekend, Bloomberg reported a more in-depth breakdown of RIF efforts within HUD.

Additionally, the U.S. Department of the Treasury has laid off the Community Development Financial Institutions Fund staff as a part of their RIF efforts.

NAA continues to monitor these developments and their impacts very closely.

Senate Passes NDAA with ROAD to Housing Act

October 10, 2025: Last night, the U.S. Senate passed the ROAD to Housing Act as an amendment (S. Amdt. 3901) to the National Defense Authorization Act for FY 2026 (S. 2296). The bill now heads to the U.S. House. Read more.

PHA Funding Loaded

October 8, 2025: According to the National Association of Housing and Redevelopment Officials, funds for the Public Housing Operating Fund, HAP and Admin Fee payments have now been loaded through the end of the year. A previous update noted that funds had only been loaded through the second week of November 2025.

Thus, housing provider payments made by Public Housing Agencies (PHAs) will not be immediately affected and their staffing should remain stable in the short term. This could change if there is ongoing uncertainty with federal funding. 

Highlights from HUD's Contingency Plan

October 6, 2025: National Apartment Association (NAA) members that benefit from federal housing subsidies through the U.S. Department of Housing and Urban Development (HUD) or other HUD-assisted programs should expect the following, according to major aspects of the agency’s 2025 Contingency Plan that are highlighted below.

  • Rental Assistance-Related Payments: HUD will continue making payments on previously obligated contracts as long as funding is available, including Section 8, Section 236, Section 202 and 811 PRAC and Section 811 PRA. Section 8 Project-Based Rental Assistance and Housing Choice Vouchers had advanced appropriations before the shutdown.
    • HUD staff will be working to identify when previously obligated Operating Subsidy, Housing Assistance Payment (HAP), or HAP Administrative Fee allocations may be insufficient to support ongoing program operations. If any available carryover funding remains or advance appropriations are available that can be used to fund these subsidy programs, necessary actions will be taken to make such funds available for timely disbursement.
    • PHAs’ HUD-held reserves may be requested (or may be automatically disbursed) to address emergency situations, such as when families are at risk or terminations of assistance or PHAs cannot afford to pay their contractual obligations to housing providers.
  • Contract Renewals: HUD will continue to process contract renewals to the extent that there is budget authority available from prior appropriations or recaptures.
  • REAC/NSPIRE/HQS Inspections:
    • Applicable to housing with mortgages insured or held by HUD, or housing that is receiving assistance from HUD, under the programs listed in 24 CFR 200.853(b); and Public Housing except Section 8.
      • Previously awarded inspections procured by HUD and funded by previous obligations will continue regardless of the reason for the inspection.
      • All inspections where the servicing mortgagee bears the responsibility for procuring the inspection will continue.
      • For inspections that are to be conducted by HUD employees:
        • Where there is reason to believe that there is a threat to life or property, the inspection will continue.
        • Where there is no reason to believe that there is a threat to life or property, the inspection will be cancelled.
        • When HUD becomes aware of a threat to life or property, HUD will schedule an inspection conducted by a HUD employee.
    • The above does not apply to units assisted under the Housing Choice Voucher (HCV) program, including the Project-Based Voucher (PBV) Program under the purview of the Office of Public and Indian Housing.
    • The Real Estate Assessment Center (REAC) Technical Assistance Center (TAC) will be operational and available to receive and answer questions related to both Multifamily and PIH financial submissions, all inspection inquiries, resident income verification and other such technical areas managed by the REAC. However, responses that require HUD staff review or approval will be delayed until the shutdown has ended.
  • Multifamily Loans:
    • HUD will close multifamily loans only on projects with Firm Commitments or Firm Approval Letters that have been issued prior to the shutdown.
    • HUD will also maintain intermittent opening of field offices to accommodate the processing of the closing of loans for multifamily housing and others where the firm commitment was issued prior to the shutdown.
      • Management approvals, TPA transactions and HAP assignments will not proceed during the shutdown unless they are FHA-insured and already have a firm commitment and a closing date.  If there are scheduled FHA closings associated with any needed reviews, housing providers should reach out to their HUD Regional Director who may call in intermittent staff to assist with processing. 
  • Grant Funding: HUD will continue to make previously obligated CDBG, HOME, and other grant funds available for draw down by Community Planning and Development (CPD) grantees. Where further action or review by HUD employees is not required for funds to be drawn down from the system, grantees will be able to draw funds normally. In addition, the majority of HUD’s annual grant programs continue to operate in states and localities when such grant funding has already been obligated.
  • Fair Housing: Nearly all of HUD’s fair housing activities stop during the shutdown. However, subject to the status of appropriation and in accordance with relevant guidance, HUD will reimburse state or local government agencies for federally funded fair housing investigations conducted during the shutdown.

NAA is watching the Congressional appropriations process and developments within the Trump Administration closely. NAA will continue to provide updates on the potential ramifications for the rental housing industry. Read more on NAA's advocacy throughout the federal appropriations process.

Agencies Reduce Force

October 2, 2025: The New York Times has reported that the U.S. Department of Housing and Urban Development had furloughed 71% of its staff -- 4,359 out of 6,105.

The agency's move comes after the Office of Management and Budget (OMB) within the Executive Office of the President in late September sent a memo to federal agency heads with guidance on how to proceed with a lapse in funding. 

The memo instructed agencies to “consider Reduction in Force (RIF) notices for all employees in programs, projects, or activities (PPAs) that satisfy all three of the following conditions:  

  1. Discretionary funding lapses on October 1, 2025;  
  2. Another source of funding, such as H.R. 1 (Public Law 119-21) is not currently available; and  
  3. The PPA is not consistent with the President’s priorities.”

The memo stated that these RIF notices should be sent regardless of whether the employee is exempted or furloughed during the shutdown, and that agencies should use the shutdown as an opportunity to retain the fewest number of necessary employees once FY 2026 appropriations are enacted.

NAA Provides Industry Resources

October 1, 2025: As a proactive measure, NAA has prepared a suite of industry resources as owners and operators of rental housing navigate the shutdown. Resources include materials for property managers and impacted residents, as well as frequently asked questions. Access NAA Resources

Rental Housing Impacts

October 1, 2025: Currently, the programs that are mandatory or already have appropriated funds will not be affected by the shutdown. As reported by Politico, these include Social Security, Medicare, veteran’s benefits, military operations, law enforcement, Immigration and Customs Enforcement, Customs and Border Protection and air traffic control.

Unlike the above, federal housing subsidies and many other federal programs from which housing providers benefit are not mandatory spending. Depending on the length of a shutdown and the extent of RIF notices, a federal shutdown could lead to payment, application and contract approval delays even after funding is appropriated.

Additional impacts to the provision of rental housing include:

  • National Flood Insurance Program (NFIP): A lapse of NFIP authority would disrupt the purchase and renewal of flood insurance in more than 20,000 communities across the United States. Read more.
  • Housing Loans: Depending on the Reduction in Force, Federal Housing Administration (FHA) and HUD Multifamily loan processing could be delayed.

Notably, lending through the Government-Sponsored Enterprises (GSEs) should not be impacted because Fannie Mae and Freddie Mac are non-governmental entities and not funded by the government. The GSEs' conservator, FHFA, is an “independent agency” whose funding is not affected by the appropriations process. Their decision-making authority over the GSEs remains unaffected.