FEMA Administrator Brock Long, left, listens as Deputy Associate Administrator for Insurance and Mitigation Roy Wright speaks about flood insurance after Hurricane Harvey. | Jacquelyn Martin/AP Photo Financial Services FEMA revives flood insurance sales after backlash

The Trump administration is restarting the sale of flood insurance policies during the government shutdown, backtracking on a controversial FEMA decision to halt new coverage, a senior administration official said.

The move was a swift change of course after FEMA on Wednesday said that insurers should no longer sell new policies backed by the flood insurance program during the shutdown.


A bipartisan group of lawmakers and business groups quickly pressed the administration to reverse FEMA's decision, which they said threatened thousands of home sales and contradicted the flood insurance reauthorization bill enacted last week.

The backlash resulted in FEMA notifying insurers this evening that it was rescinding its earlier guidance and that they could resume selling flood policies. The White House Office of Management and Budget was involved in the decision to change course.

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"While it’s frustrating that they did not follow Congressional intent from the beginning, I’m glad they were willing to work with me on reversing their decision," House Majority Whip Steve Scalise said.

Millions of homeowners depend on the insurance to protect themselves from the financial risks of flooding, and some borrowers are required to obtain it when seeking a mortgage.

"It’s unfortunate so many people were inconvenienced due to FEMA’s error, but I’m glad they are correcting it so home sales in limbo can proceed,” Sen. Bill Cassidy (R-La.) said.