Wednesday
July 30, 2014

FEMA May Seek Flood Insurance Bailout

|
-A A +A

FEMA May Seek Flood Insurance Bailout

The Federal Emergency Management Agency (FEMA) is likely to request a congressional bailout for the National Flood Insurance Program (NFIP) as losses from Hurricane Sandy are expected to be between $6 billion and $12 billion, more than its current borrowing capacity of $2.9 billion. 

NFIP still owes taxpayers about $18 billion from Hurricane Katrina losses in 2005. While Congress passed a package of NFIP reforms to improve the program's finances, those changes are unlikely to have an impact for several years.

Edward Connor, FEMA's deputy associate administrator for federal insurance, said he expects the Homeland Security Department to seek an expansion of NFIP's $20.7 billion borrowing cap from Congress.

Source: "FEMA May Seek Flood Insurance Bailout After Sandy," Reuters (Nov. 14, 2012)

© Copyright 2012 Information Inc.

Read More

Flood Insurance Passed, But Challenges Remain