U.S. Rep Maxine Waters: Congress should forgive flood insurance program debt
To build back its reserves, the NFIP has resorted to fee increases that are only exacerbating the unaffordability of flood insurance for policyholders. But even under the most optimistic projections, the NFIP will never be able to repay its debt to the U.S. Treasury. Meanwhile, the NFIP has already spent $3 billion just to cover the interest on the debt, making it more likely that the program will have to borrow again in the future. So while homeowners are struggling to make ends meet, the federal government is spending billions of dollars to lend itself money. Even conservative think tanks like the R Street Institute acknowledge that the debt will never be repaid and that the “repayment” of this debt is nothing more than an accounting gimmick.