National Flood Insurance Program will be out of funds by next week
There may be bad news on the horizon for the National Flood Insurance Program. The Federal Emergency Management Agency (FEMA) has announced that the federal flood insurance program will be completely out of money next week. Hurricane Sandy, which struck the East Coast in late October 2012, dealt a powerful blow to the National Flood Insurance Program. The powerful storm compounded the financial problems that the program has been dealing with for several years.
FEMA officials push for action on flood program funding
According to FEMA officials, the National Flood Insurance Program will run out of fund at some point next week if action is not taken. The program is typically the only place homeowners can find the flood insurance coverage that they need, as most private insurance companies do not offer coverage for flood damage due to the risks associated with properties close to the coast. Hurricane Sandy caused widespread floods in many states, including New York and New Jersey, putting extraordinary strain on the National Flood Insurance Program. If the program runs out of money, claims related to Hurricane Sandy will go unpaid.
House fails to approve emergency spending plan
Earlier this week, the Senate passed a measure that would allocate $60.2 billion in storm relief for Hurricane Sandy. Approximately $9.7 billion of this money would have gone to the National Flood Insurance Program in order to assist in claims payments. The House of Representatives, however, has failed to approve the emergency spending plan, putting the flood insurance program at jeopardy of financial collapse. FEMA officials are pushing for aggressive and decisive action in order to avoid a potential calamity.
House schedules two votes on spending plan
The House of Representatives is scheduled to hold two votes concerning the emergency spending plan. The first vote, which will be held at the end of this week, will concern the money needed for the National Flood Insurance Program. The second vote, which is scheduled for January 15, will focus on the rest of the funds associated with the spending plan.
