STATEHOUSE (Nov. 5, 2025) – The federal government shutdown has entered its second month, resulting in certain mortgage and housing programs being slowed or paused, said State Rep. Tim O'Brien (R-Evansville).
O'Brien said the housing market, which makes up one-fifth of the U.S. economy, is feeling the weight of the federal shutdown as homebuyers face delayed closings, sellers see contracts fall through and local communities lose access to key programs that help keep housing affordable. With several federal agencies unable to operate normally during a shutdown, loans backed by the Federal Housing Administration or Veterans Affairs face significant delays, while loans backed by the U.S. Department of Agriculture have been put on hold, creating uncertainty across the market.
"Many Hoosiers are relying on federally backed loans or flood insurance, and they are at a major risk of delay in the home-buying and closing process," O'Brien said. "Families should not have to put their dreams of owning a home on hold while waiting for the federal government to get back to work."
He added that a potential lapse in the National Flood Insurance Program (NFIP) will leave the program unable to issue new policies, complicating an estimated 1,400 property transactions each day. Without flood coverage, homebuyers in at-risk areas could be forced to postpone or cancel their closings altogether.
"Every day of delay adds stress, expense and uncertainty for people trying to move into their new homes," O'Brien said. "For those who are affected by these delays, this is not just a political issue, it’s a personal one."
According to a release from Housing and Urban Development (HUD) Secretary Scott Turner, all new HUD-backed loans for health care projects are on hold, limiting access. Additionally, Public Housing Authorities (PHAs) risk running out of resources to house and support vulnerable Americans and families in need, including during cold winter months.
In separate press releases this month, O'Brien called on the federal government to reopen amid uncertainty surrounding SNAP benefits and Small Business Administration loan distributions also being delayed, negatively impacting vulnerable families and children in Indiana.
O'Brien said that he will continue working in his district and keeping constituents informed during the duration of the shutdown.
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State Rep. Tim O'Brien (R-Evansville) represents House District 78,
which includes portions of Vanderburgh and Warrick counties.
Click here to download a high-resolution photo.
