Two Democratic lawmakers are pressing the Trump administration about its management of the National Flood
Insurance Program after cuts at the agency that runs it, the Federal Emergency Management Agency.
In a letter to FEMA’s Acting Administrator David Richardson th
at was shared with Bloomberg News, Senators Elizabeth Warren of Massachusetts and Andy Kim of New Jersey sai
d the agency’s shifting p
riorities and loss of staff could destabilize a program that 4.7 million Americans rely on.
“FEMA is failing to adequately manage NFIP,” the lawmakers wrot
e. They asked Richardson to explain how staff changes at the agency are affecting the insurance program.
Related: National Flood Insurance Program Once Again on the Verge of Expiration
The letter comes as the NFIP is also facing another major risk: the law authorizing its operation is set
to expire on September 30th. That deadline coincides with the da
te Congress must reauthorize the entire federal budget. Currently, ther
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e are not the votes and Washington D.C. is bracing for shutdown.
FEMA and the Department of Homeland Security did not immediately respond to a request for comment on the letter.
US home insurance policies don’t cover flood damage, and the va
st majority of Americans who hold separate flood coverage get it throug
h the NFIP. Since its inception in 1968, the program has also map
ped hazard zones and
developed floodplain management standards to try to reduce flood dangers nationwide.
In their letter dated Sept. 26, Kim and Warren said that a weakened NFIP could translate into higher premiums and redu
ced coverage for homeowners as well as a dearth of reliable data for priv
ate insurers, who consult FEMA’s hazard modeling. Insurance c
osts have already been climbing for US homeowners, and in some high-risk regions, insurers have dropped policies or pulled out altogether.
Since the beginning of Trump’s second term, FEMA’s staff has shrunk by more than 2,000. Trump has talke
d of eliminating the agency, saying that states and communities should take more responsibility for recovering from d
isasters. Last month, current and former FEMA staffers wrote a letter t
o Congress warning that cuts have left the agency unprepared to deal with a major catastrophe.
If the federal government shuts down on Oct. 1, NFIP’s authorization will lapse. Should that happen, current p
olicyholders would be able to get payouts but the program would stop i
ssuing new policies and renewing them. That could impact home sa
les around the US, the National Association of Realtors said.
Photo: Homes surrounded by floodwaters from Hurricane Beryl in Sargent, Texas, on July 8, 2024. Photographer: Eddie Seal/Bloomberg