Thursday, September 27, 2007
By: Alexa Moutevelis

Wastewatcher, September 2007

Congress is considering changes to the National Flood Insurance Program (NFIP) as well as increasing the availability of state-sponsored insurance funds.  Both initiatives would expose taxpayers to massive costs.

The Flood Insurance Reform and Modernization Act of 2007, H.R. 3121, reauthorizes the NFIP for five years, increases NFIP borrowing authority, and makes updates to maximum insurance limits.  The bill includes multi-peril coverage under the NFIP for the first time.

According to the Congressional Budget Office, the NFIP currently has a deficit of $17.5 billion.  That will increase by an average of $900 million per year, depending on the level of flooding.

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