Friday marks the first day of the new fiscal year for the federal government, a consequential date for a raft of programs and government funding. With hours to spare Thursday evening, Congress sent President Joe Biden a nine-week government funding extension. The bill continues funding at current levels through Dec. 3 and includes a reauthorization of the National Flood Insurance Program.
On Friday, the Federal Emergency Management Agency’s new Risk Rating 2.0 went into effect for new policies issued through the NFIP. Existing policyholders eligible for renewal can also now take advantage if they qualify for lower rates. All remaining policies are scheduled to transfer to the new rates on April 1, 2022.
Meanwhile, Congress continues to deliberate on Biden’s Build Back Better plan, which includes two bills: a bipartisan “hard” infrastructure plan covering traditional items like roads and bridges and a “human” infrastructure plan covering items like education and health care.
House Democratic leaders delayed a planned vote on the bipartisan hard infrastructure bill Thursday night after some legislators first sought a deal on the human infrastructure bill. This delay resulted in a temporary lapse in certain surface transportation programs beginning today. The bipartisan hard infrastructure bill has already passed the Senate.
Treasury Secretary Janet Yellen this week also warned Congress that the debt ceiling must be lifted or the U.S. could suffer a default around Oct. 18.