Press Releases

Subcommittee Takes First Step Towards Reforming, Reauthorizing National Flood Insurance Program


Washington, March 9, 2017 -

Members of the Financial Services Housing and Insurance Subcommittee met on Thursday to examine the National Flood Insurance Program (NFIP) – which is set to expire on September 30th – and the significant reforms needed.

“A timely reauthorization of the NFIP is the top priority of this subcommittee. Hearing FEMA’s perspective on the issues facing the program – including the accuracy of FEMA’s flood maps and concerns about claim processing problems – are vital as we ready legislation to reauthorize this program which is so important to millions of Americans,” said Subcommittee Chairman Sean Duffy (R-WI).

Key Takeaways from the Hearing:

  • The National Flood Insurance Program is in need of significant reform. The program runs an estimated annual deficit as high as $1.5 billion and already is $24.6 billion in the red to taxpayers, with no foreseeable way to ever repay them.
  • Instead of reducing taxpayer risk to deadly floods, the federal government has spent more than $200 billion on flood recoveries since 2000 in addition to the NFIP. Meanwhile, customer dissatisfaction with how the NFIP operates, approves flood maps, and pays claims has remained high and keeps on growing with each new storm.
  • The private sector can and should play a more meaningful role in flood insurance.

Topline Witness Quote:

“We recognize that the nation faces broad public policy questions around flood insurance affordability, continued development in flood-prone areas, the soundness of the NFIP’s financial framework, and greater private sector participation in flood insurance markets. Through all of this, FEMA’s priority is to increase flood insurance coverage so that disaster survivors can recover more quickly and fully after flood events.” Roy E. Wright, FEMA Deputy Associate Administrator for Federal Insurance and Mitigation Administration

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