The National Flood Insurance Program will continue in operationduring the current federal government shutdown, according to DanWatson, a spokesman for the Federal Emergency Management Agency,which administers the program.

“In the case of a lapse in annual appropriations, FEMA, whichadministers the NFIP at the direction of Congress, will continue topay out claims, write new policies and operate the NFIP withexisting funds,” Watson said.

The NFIP will continue in operation because it is funded bypremiums, not by Congress. That's similar to the situationat the NCUA, which is funded by credit unions.

An estimated 800,000 federal workers were being furloughedstarting Tuesday, while an additional 1 million will be working butwith the understanding that it is unclear when they will bepaid.

Members of Congress are being paid, according to announcementsby several members of Congress, but their staffs are not.

Meanwhile, House and Senate supporters of legislation that wouldmodify the 2012 law that would significantly raise flood insurancepremiums are demanding prompt action by Congress to ease the impacton affected homeowners.

Sen. Mary Landrieu (D-La.) on Tuesday joined six other senators at a midday press conference.

The senators held the meeting as a way of “building momentum”for Congress to act promptly to on a “comprehensive legislativepackage aimed at “delaying, amending or significantly modifying”the Biggert-Water Flood Insurance Reform Act that passed last year.In some cases, the law mandates increases in flood insurance of upto 3,000% in the National Flood Insurance Program.

Those attending the session said they had enlisted the supportof the National Homebuilders Association, National Association ofRealtors, Independent Community Bankers of America and the AmericanBankers Association in their effort to have the 2012 billmodified.

Joining Landrieu were Sens. David Vitter (R-La.), Bill Nelson(D-Fla.), Marco Rubio (R-Fla.), Heidi Heitkamp (D-N.D.), JohnHoeven (R-N.D.) and Bob Menendez ( D-N.J.)

“Our flood insurance program is not functioning the way itshould and is putting a great number of people at risk,” Landrieusaid.

The Mississippi state insurance commissioner has sued to stop therate increases but that request for an injunction has not yet beenheard.