Christian Britschgi of Reason reports that a House Democrats’ housing bill includes a $20 billion bailout for the National Flood Insurance Program (NFIP).
- While well intentioned, the NFIP has become a program that is in serious need of reform and is $20 billion in debt.
- The NFIP fails to accurately assess risk which incentivizes poor building practices and puts people in harm’s way.
- Instead of issuing another bailout, Congress should reform the NFIP to make it a more sustainable program that accurately reflects flood risk.
“By 2017, the NFIP had accumulated $30 billion in debt to the Treasury. That same year Congress passed a bill wiping out $16 billion of that debt. But continued borrowing since has left it $20 billion in arrears.”
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