Updates to make the program more solvent also make it more expensive.
The Federal Emergency Management Agency (FEMA) issued its new update to the nation’s flood insurance program to make the program more solvent and to reflect the risk driven by climate change. It is a response in part to criticism that taxpayers were funding big payouts when coastal mansions in risky locations flooded.
In a FEMA report, the agency estimates one million fewer Americans will buy flood insurance by the end of the decade—a sizeable number of people at risk of catastrophic financial loss.
Senator Bob Menendez of New Jersey said affordability is a problem and FEMA didn’t disclose the impact of those higher costs. “This report makes it crystal clear that FEMA failed to be transparent with policyholders, Congress, and ultimately the American public,” Senator Menendez stated. “It shouldn’t have taken a records request for details to emerge, he said.
As the Lord Leads, Pray with Us…
- For understanding for Administrator Criswell and FEMA leaders as they assess and update guidelines and regulations.
- For Senator Menendez and other legislators who are keeping watch over the policies of federal departments.
Sources: Newsmax, FEMA, Bloomberg News
