On Wednesday night, the Trump Administration sent a letter to Congress requesting $12.77 billion in emergency hurricane relief funds and $16 billion for the NFIP. The letter also outlined a number of substantial reforms that the Administration believes should be made to the NFIP.
The NFIP estimates the program will exhaust all its financial resources and be unable to pay claims by the week of Oct. 23. This includes a $30.4 billion line of credit with the Treasury Department. As such, the Administration proposes canceling $16 billion of the program’s existing debt—the projected loss the NFIP will incur from Hurricanes Harvey, Irma and Maria.
The letter notes the NFIP is “not fiscally sustainable” and needs not only immediate financial relief but a number of reforms to place it on “sound financial footing” and “enable the private market for flood insurance to expand.” The Administration’s suggested reforms include:
The letter also requests $576.5 million to help respond to catastrophic wildfires that have been burning in many Western states.
Congress is expected to debate these issues later this month, but it is unclear whether it will address substantial NFIP reforms. The program is currently set to expire on Dec. 8.
Jennifer Webb is Big “I” federal government affairs counsel.