These days, Congresswoman Maxine Waters (D-CA), the supremacy Democrat at the Area Monetary Products and services Committee, despatched a letter to Speaker Mike Johnson (R-LA) and Democratic Chief Hakeem Jeffries (D-NY), urging the Area to shoot rapid motion to backup the catastrophe cure efforts throughout the Nationwide Overflow Insurance coverage Program (NFIP) for households and communities suffering from Hurricanes Helene and Milton, two of the deadliest and most expensive hurricanes in our familyโs historical past.
To do that, Congresswoman Waters stressed out the want to forgive the NFIP debt, as incorporated within the Congresswomanโs invoice the โHousing Crisis Response Act.โ Because it stands, mounting NFIP debt will impede the NFIPโs capability to pay inundation insurance coverage claims and put together protection dearer and no more available for wave and while policyholders.
โAs of October 7, 2024, the NFIP had a total of more than $14.1 billion in capacity, including over $4.2 billion in cash-on-hand resources and $9.9 billion in borrowing authority. Make no mistake that just one more storm could bankrupt the program and prevent future claims payments to devastated communities and responsible, taxpaying policyholders,โ Congresswoman Waters wrote. โโฆJust as Congress regularly provides disaster recovery grants for under-insured or uninsured households, we must not penalize current and future NFIP policyholders with skyrocketing debt that pushes up the cost of premiums. We know that future disasters with damages over $1 billion are inevitable and can hit at any moment. Thatโs why now is the time for Congress to fully forgive the NFIP debt and help stabilize the program.โ
See the letter here and under:
The Honorable Mike Johnson
Speaker
U.S. Area of Representatives H-232,
The Capitol Washington, DC 20515
The Honorable Hakeem Jeffries
Democratic Chief
U.S. Area of Representatives H-204,
The Capitol Washington, DC 20515
Pricey Speaker Johnson and Chief Jeffries:
In October, a number of states had been ravaged by means of Hurricanes Helene and Milton. Time reliable estimates of the monetary damages of each failures stay underway, Helene and Milton are a number of the deadliest hurricanes in our familyโs historical past and anticipated to be a number of the most expensive. With Congress again in consultation, the Area should be ready with an sufficient reaction to assure households and communities can totally recuperate and rebuild housing, companies, and alternative essential infrastructure. This reaction should come with long-term reauthorization of the Federal Catastrophe Control Companyโs (FEMA) Nationwide Overflow Insurance coverage Program (NFIP), as complete debt excuse, as defined under.
The NFIP was once created by means of Congress in 1968 with the passage of the Nationwide Overflow Insurance coverage Operate (NFIA).1 These days, most owners insurance coverage insurance policies exclude inundation insurance policy, and distant protection for inundation insurance coverage is most effective to be had on an overly restricted foundation from non-public corporations, ceaselessly at a price this is unaffordable to low- and moderate-income families. Due to this fact, the NFIP is the main supply of same old inundation insurance policy for house owners, renters, and tiny companies within the U.S. The NFIPโs capability to pay out claims to policyholders to barricade flood-related damages derives from statutory authority to borrow a complete of $30.425 billion from the Treasury, along with top rate revenues, and reinsurance authority. As of October 7, 2024, the NFIP had a complete of greater than $14.1 billion in capability, together with over $4.2 billion in cash-on-hand assets and $9.9 billion in borrowing authority. Create deny mistake that only one extra typhoon may just bankrupt this system and prohibit while claims bills to devastated communities and accountable, taxpaying policyholders. Fortunately, there are a lot movements Individuals of Congress can and will have to shoot.
If the Area takes up a supplemental investment package deal to answer Helene and Milton catastrophe cure efforts, debt excuse for the NFIP should be prioritized; legislative language to perform that is incorporated in my invoice, H.R. 4233, the โHousing Crisis Response Act.โ The NFIP has $20.5 billion in exceptional debt that FEMA is lately paying just about $700 million in annual pastime to the U.S. Treasury. Factoring in projected claims from Helene and Milton, FEMA estimates that those pastime bills would exit as much as $1.3 billion by means of 2034.2 This debt now not most effective hamstrings the NFIPโs capability to pay claims, but it surely additionally makes NFIP protection dearer for wave and while policyholders. This debt represents claims from house owners who responsibly retained inundation insurance policy to bring so that you can rebuild nearest a typhoon. Simply as Congress ceaselessly supplies catastrophe cure grants for under-insured or uninsured families, we should now not penalize wave and while NFIP policyholders with skyrocketing debt that pushes up the price of premiums. We all know that while failures with damages over $1 billion are inevitable and will collision at any future. Thatโs why now’s the pace for Congress to totally forgive the NFIP debt and support stabilize this system.
I thanks to your consideration to this factor and recognize your pressing motion to support give protection to households, a lot of whom have simply skilled one of the most worst occasions in their lives.
Sincerely,
MAXINE WATERS
Score Member
Committee on Monetary Products and services
CC: Patrick McHenry, Chair, Committee on Monetary Products and services, U.S. Area of Representatives
