The federal government shut down ten days ago, with no resolution in sight. (Punchbowl News, Oct. 9 | Oct. 10)

State of Play

• On Thursday, Senate Democrats rejected for the seventh time, Republicans’ proposal to extend government funding through Nov. 21. (Roll Call, Oct. 8)

• In response, GOP senators blocked Democrats’ competing plan to extend Affordable Care Act premium tax credits, reverse Medicaid cuts, and limit President Trump’s authority to rescind congressionally approved funds. (Punchbowl News, Oct. 7)

• Top Democrats, led by Senate Minority Leader Chuck Schumer (D-NY), are calling for bipartisan negotiations on health care, arguing that Republicans face growing pressure to renew expiring health care subsidies as part of any funding deal. (PoliticoPro, Oct. 6)

• House Speaker Mike Johnson (R-LA) said he will not recall the House to Washington until Democrats agree to work with Republicans on a funding plan. (NPR, Oct. 9)

• Senate Majority Leader John Thune (R-SD) said he is open to discussions on health care tax credits only after the government reopens. “We said we’re willing to have those conversations, but it starts with ending the shutdown,” Sen. Thune said. (PoliticoPro, Oct. 6)

CRE Impact

• While the shutdown poses broader economic risks, its immediate impact on commercial real estate remains limited, as most operations continue unaffected. A prolonged closure, however, could disrupt HUD rental subsidies, further delay economic data, and weigh on investor confidence, according to Marcus & Millichap. (Connect CRE, Oct. 7)

• The National Flood Insurance Program (NFIP) cannot issue new policies or renewals during the shutdown, threatening thousands of real estate transactions. The Real Estate Roundtable (RER) supports a long-term, sustainable NFIP reauthorization to avoid recurring market disruptions. (Roundtable Weekly, Sept. 19)

• The shutdown is also stalling work on bipartisan priorities such as fiscal 2026 spending bills, energy legislation, and permitting reform. “One of the things that’s not getting done while the government is shut down is an appropriations process that allows us to fund the government the old-fashioned way, in the light of day,” said Sen. Thune. “We aren't working on permitting reform, which should be a bipartisan priority.” (E&E News, Oct. 6)

• At the IRS, nearly half the workforce has been furloughed as of Wednesday, though the agency will continue implementing President Trump’s recent tax cuts.(Politico, Oct. 8)

• The Cybersecurity and Infrastructure Security Agency (CISA) is operating with roughly one-third of its staff, heightening concerns about protections for the electric grid, water systems, and critical infrastructure amid rising cyber threats. (Washington Post, Oct. 2)

• “Government shutdowns and temporary extensions of essential programs like the NFIP create avoidable uncertainty that disrupts real estate markets and undermines economic confidence,” said RER President & CEO Jeffrey DeBoer. “Congress should act responsibly by providing long-term solutions that protect communities and the American people, encourage investment, and sustain growth.” (Roundtable Weekly, Oct. 3)

The longer the shutdown persists, the greater the risk of delayed projects, stalled investment, and uncertainty across real estate markets that depend on reliable federal programs.

The National Flood Insurance Program (NFIP) expired Oct. 1 as partisan gridlock in Washington dragged into a second week, halting new policies and renewals for millions of Americans and real estate transactions in flood-prone areas.

State of Play

• The NFIP’s lapse stems from the broader government shutdown fight, with each party blaming the other for inaction. (E&E News, Oct. 8)

• House Republicans say Democrats have repeatedly blocked their short-term funding bill, which includes a seven-week NFIP extension. Democrats counter that GOP leaders have refused to hold a stand-alone vote on reauthorization while keeping the House largely in recess.

• Speaker Mike Johnson (R-LA) said the NFIP “will be reauthorized in due course,” but called the program’s lapse one of several “leverage points” in the broader negotiations. (E&E News, Oct. 8)

• Senate Majority Leader John Thune (R-SD) on Tuesday cited the NFIP in floor remarks for the first time since the shutdown began, calling it one of several programs Democrats are stalling by opposing the GOP’s plan to reopen the government.

• Meanwhile, FEMA has paused NFIP operations, unable to issue new policies or renewals. The program also cannot ensure payment of claims if major flooding occurs during the shutdown.

Roundtable Advocacy

• The Real Estate Roundtable (RER) continues to urge Congress to enact a sustainable, long-term NFIP reauthorization with appropriate reforms.

• A robust and stable program is essential for residential markets, catastrophe insurance capacity, and the broader economy. (Roundtable Weekly, Sept. 19)

• Lawmakers from both parties have long called for an overhaul and signaled interest in pursuing longer-term reforms to the program.

• The rising cost of insurance premiums due to the growing number of billion-dollar natural disasters reinforces the importance of the NFIP.

• While Congress has typically renewed the NFIP retroactively after past lapses, there is no guarantee this time. A delayed reauthorization could further disrupt real estate markets and delay policy effective dates. (NAHB, Oct. 1)

Housing Impact

• The National Association of Realtors (NAR) estimates the lapse could stall or cancel about 1,400 home sales per day until the NFIP resumes operations. (NYT, Oct. 9)

• “Each day that passes during the shutdown, potential real-life impacts will be felt in America’s housing market, which accounts for nearly 20% of the US economy,” said Shannon McGahn, (EVP and Chief Advocacy Officer, NAR) (Bloomberg, Oct. 9)

• NFIP provides $1.3 trillion in flood insurance to 4.7 million policyholders across 23,000 communities. It underpins nearly 500,000 home sales annually, supports 1 million jobs, and contributes $70 billion to the U.S. economy. (NAR, Oct. 7)

• While some private insurers are expanding their offerings, they still represent only a fraction of the market—and typically charge higher premiums, adding costs for homebuyers. (Bloomberg, Oct. 9)

Congressional leaders have vowed to revisit flood insurance reauthorization once the government restores funding. RER will continue to advocate for a long-term NFIP solution.

Unprecedented demand for electricity is prompting major private sector investments to shore up the grid’s security and reliability, amid the Trump Administration’s cancellation of Biden era clean energy funds.

Billions in Private Investments

• Investor-owned electric companies plan to invest an unprecedented record-high $208 billion in capital projects this year — a $30 billion increase from 2024 — to modernize transmission systems, expand capacity, and manage consumer costs, according to new Edison Electric Institute (EEI) data. (Axios, Oct. 7)

• “Our new data shows how our industry is strengthening the energy grid with real investments—in jobs, critical infrastructure, and communities across the nation,” Edison Electric Institute President and CEO Drew Maloney said in a statement. (Axios, Oct. 7)

Major Energy Policy Shift

• Meanwhile, the Trump administration is cutting federal support “to get low-cost renewable projects on the grid”—cancelling billions in Biden administration project funding—and “pinning many of its promises of energy affordability on a nuclear moon shot.” (PoliticoPro, Oct. 6).

• The Department of Energy (DOE) announced millions to “reinvigorate America’s coal industry” (Release, Sept. 25), while the Department of the Interior (DOI) has opened up more federal lands to coal leasing. (Release, Sept. 29)

• The Environmental Protection Agency (EPA) is pushing for a natural gas pipeline “vital to New England’s grid stability.” (Release, Aug. 6)

• The sharp policy swing has some members of Congress calling for a fuel-agnostic, all-of-the-above national energy strategy. “We need every electron we can get if we want to be energy dominant. To do that, we should take every electron,” said Sen. John Curtis (R-UT). (PoliticoPro, Oct. 6)

The Drivers

• Electricity demand is spiking from a “perfect storm” of multiple forces:

• AI and Data Centers: Expected to account for nearly half of global demand growth through 2030. (IEA 2025)

• EV Charging: Electric vehicles are expected to raise global power demand 6–8% by 2035 (IEA 2024)

• Manufacturing Reshoring: New U.S. facilities for semiconductors, batteries, and critical minerals production will significantly increase industrial load (CSIS 2024)

• Crypto Mining: U.S. Bitcoin mining consumes electricity equal to powering 6 million homes (EIA 2024)

• Building Electrification: 40% of U.S. buildings now use electric heating, driven by codes, tenant preferences, and investor sustainability demands (BOMA 2023)

Permitting Reform

• Permitting reform continues to be a top bipartisan priority on Capitol Hill, as lawmakers debate how best to reform the federal approval process for energy infrastructure projects. (Utility Dive, Sept. 18 | Roundtable Weekly, Oct. 2024)

• Last month, the bipartisan House Problem Solvers Caucus released a framework to speed construction of transmission lines, pipelines, and power projects to meet surging energy demand. (PoliticoPro, Sept. 18)

• In September, the House Natural Resources Committee held a legislative hearing on a trio of bipartisan permitting reform bills—including Chair Bruce Westerman’s (R-AR) SPEED Act, aimed at streamlining the permitting process. “My goal is to have a big permitting bill sitting over at the Senate for them to consider with some bipartisan support." (PoliticoPro, Sept. 18)

• At an event last month, White House National Energy Dominance Council Executive Director Jarrod Agen said, “Probably the top priority for us from an energy perspective” is permitting reform to build transmission lines and pipelines. (E&E News, Sept. 8)

• RER believes permitting reform is essential for advancing our economy’s energy transition. The current fragmented system of administrative reviews and approvals hinders the delivery of quick, low-cost, reliable electricity to our nation’s homes and commercial buildings. (Roundtable Weekly, March 7)

Energy supply, grid reliability, and infrastructure investment will be a central topic at RER’s Fall Meeting (Roundtable-level members only) on Oct. 27–28 in Washington, D.C.