Budget reform in reverse: Congress prepares to hike flood insurance subsidies
Over time, observed Eli Lehrer…there was “continued erosion of premiums intended to get more people into the program coupled with the program’s long term financial deterioration.” Congress regularly cut premiums. By 1982 two-thirds of participants received a subsidy, which in turn “attracted people who took greater risks,” further increasing deficits. Although private companies administered the program, Uncle Sam covered the risks.
