The National Flood Insurance Program was $20 billion in debt before Superstorm Sandy. It’s going to get much worse.
Over decades the NFIP (National Flood Insurance Program) has been subsidized by the taxpayer. But that hasn’t been enough. It’s also been running up a debt which has reached $20,000,000,000.00 (Twenty Billion Dollars if I’ve counted my zeroes right). Now, Sandy will cost about $12 to $15 billion in claims and there isn’t enough money in the NFIP program to pay them all, so they’re anticipating borrowing another $4 to $9 billion, voiding the existing borrowing limit and establishing a new borrowing limit at as much as $30 billion.
(Why pretend to have “Borrowing limits” if it doesn’t limit – or even slow down – borrowing?)
Click this link to the source article “Regulator: NFIP Borrowing Authority May Need to Be Raised to $30B”
While some years show the program funding itself, years with major catastrophes hit the program’s finances so hard it takes many years to recover, such as Hurricanes Katrina and Rita in 2005 which it still hasn’t recovered from…This year, with the Mississippi River’s massive flooding, it’s likely to take another turn for the worse.
Click here for original, complete article.