Federal Housing Programs Resume After Historic Government Shutdown

Federal housing programs are officially back in operation following the passage of a government-funding agreement approved by Congress and signed by President Donald Trump. The deal ends the longest government shutdown in U.S. history and brings critical relief to homebuyers, homeowners and the real estate industry.

In a statement published by the National Association of REALTORS® (NAR), Shannon McGahn, the association’s Chief Advocacy Officer and Executive Vice President, described the reopening as “welcome news for Americans whose home purchases and insurance renewals have been delayed or derailed over the past several weeks.”

According to NAR’s report, members across the country had been experiencing stalled FHA, VA and USDA loans, as well as halted National Flood Insurance Program (NFIP) policies, delays that created ripple effects in local economies and disrupted real estate activity.

McGahn also cautioned in the NAR statement that agencies face a significant backlog: “There is a six-week backlog with many of these programs, so I would expect there to be some additional delays as they work through them.”

WHAT THE FUNDING AGREEMENT INCLUDES

The legislation:

• Fully reopens federal housing programs, allowing FHA, VA and USDA loan processes to resume
• Extends the National Flood Insurance Program (NFIP) through January 30, 2026
• Provides full-year funding for agriculture, military construction and legislative agencies through September 30, 2026
• Reinstates federal workers with back pay

Congress must still pass additional appropriations by the January deadline to complete the remaining government funding.

NAR’S ADVOCACY EFFORTS

Much of the advocacy information comes directly from NAR’s official recap of its work during the shutdown. Their efforts included:

• Issuing a national Call for Action urging members to contact Congress
• Collecting more than 600 firsthand reports about stalled transactions and delayed closings
• Coordinating with over 40 REALTOR® associations nationwide
• Reaching all 535 congressional offices with letters, impact data and member stories
• Holding more than 80 high-level meetings with congressional leaders
• Engaging with senior officials at HUD, FHA, VA, Treasury and the White House

With real estate contributing nearly 20% of U.S. GDP, restoring federal housing operations is seen as a major step toward stabilizing the market and rebuilding consumer confidence.