President Joe Biden has signed legislation that funds the federal government and extends the National Flood Insurance Program to March 14, 2025. That makes the Ides of March the next point when the program is vulnerable to have its authorization lapse.

In a press release, the Federal Emergency Management Agency, the parent agency for the flood insurance program, said that the agency and Congress have never failed to honor the flood insurance contracts of the program’s policyholders. The danger for the program of a lapsing authorization is that FEMA may have to stop selling and renewing policies. Even a temporary interruption of the program would have significant impact on coastal communities like those in Cape May County.

The National Association of Realtors estimates that a lapse might negatively impact approximately 1,300 property sales each day, causing problems for up to 40,000 closings per month. According to FEMA, home sales require flood insurance if the property is located in a high-risk flood area and the buyer has a mortgage from a government-backed lender.

The 16 municipalities that comprise Cape May County currently have 48,773 National Flood Insurance Program policies in force, with total coverage of just over $12 billion. Almost 80% of those policies are in the county’s island communities.

Even on the islands, there is a concentration of policies in specific towns, with 55% of all county policies in force in just the three municipalities of Ocean City, Sea Isle City and North Wildwood. FEMA data on county policies is as of Nov. 30.

A number of county towns participate in the Community Rating System program as a way of offering citizens a discount on flood insurance premiums. The most recent FEMA data show that 11 of the 16 municipalities in the county are part of the CRS program, with discounts ranging from 15% for Cape May Point and Lower Township to 35% for Avalon and Sea Isle City.

Of the five towns that do not participate or offer discounts to property owners, three are mainland communities – Dennis and Middle townships and Woodbine borough – and two are island communities – West Cape May and West Wildwood.

Congress also authorized $100 billion in disaster relief as part of the funding bill. Of that, $29 billion goes to the FEMA disaster relief fund, which FEMA Administrator Deanne Criswell said at a Senate hearing in November was down to its final $5 billion.