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Republican lawmakers urge National Flood Insurance Program reform
By: Douglas Clark, Financial Regulation News

Washington, Mar 21 -

Republican House Financial Services Committee members called last week for meaningful reform of the National Flood Insurance Program (NFIP).

During a recent hearing focusing on the program’s reauthorization, members highlighted the need to modernize the 51-year-old initiative that continues to accumulate debt.

Rep. Patrick McHenry (R-NC) called for programmatic reforms including better data, increased transparency, better technology, and more innovation while also noting the amount of debt, more than $20 billion, the NFIP owes the Treasury.

In a letter to Committee Chairwoman Maxine Waters in January officials said McHenry listed NFIP reform as a top priority and urged Waters to hold a hearing on NFIP affordability, availability and long-term solvency.

“One thing that I hear from people back home, frustration with the federal government, is the government doesn’t live by the same rules that we put on people,” Rep. Barry Loudermilk (R-GA) said regarding the Democrats proposed legislation to forgive the NFIP’s $20 billion debt. “How many businesses or how many individuals would we just go and forgive their debt? I think we need to be a little more fiscally responsible as we move forward. I’m quite perplexed that we’re not going to address any major reforms regarding the fiscal problems that we have with flood insurance.”