Washington, D.C. – Today, the House Financial Services Committee approved a series of bills to reform and improve the National Flood Insurance Program (NFIP).
Established by Congress in 1968, the NFIP provides insurance for properties at risk of flooding and was intended to reduce the threat of future flood damage by aiding in mitigation and assistance efforts. Today, the NFIP carries an annual $1.4 billion deficit on top of the $24.6 billion in debt it already holds on its balance sheet. As the federal government continues to pay hundreds of billions in disaster recovery costs in addition to the subsidies provided by the NFIP, homeowners, lenders, and insurers agree, the program is in desperate need of reform.
“With 5.1 million policyholders nationwide and nearly $25 billion in debt, the NFIP, like so many federal programs, is in desperate need of reform,” said Emmer. “Although Minnesota is not a coastal-state, more than 10,000 policyholders in my state face many of the same challenges and issues as those in Florida, New Jersey and Louisiana. These are real taxpayers who deserve a program that works for them today and in the years to come. I am pleased to join my colleagues in the House Financial Services Committee to pass this reform to bring the National Flood Insurance Program back to solvency so it works for all Americans.”
The Committee approved a total of seven bills as part of an effort to reauthorize and reform National Flood Insurance Program. These efforts will extend the program – which is set to expire on September 30, 2017 – for an additional five years and takes key steps to: protect current and future homeowners; improve mapping and mitigation efforts; keep taxpayers off-the-hook for future federal bailouts; and allow for private innovation and American ingenuity to make this program more efficient and effective in the future.
Congressman Emmer represents Minnesota’s Sixth Congressional District and sits on the House Financial Services Committee.
To read more about these reforms, visit the committee's website here.