News from Heritage.org:

The House is slated next week to decide whether taxpayers will continue to subsidize flood insurance for private property. The pending legislation would rescind reforms adopted in 2012 to stem the debt incurred by the government’s unworkable insurance scheme. But a variety of legislative alternatives exist that would assist flood-prone property owners without foisting the cost on taxpayers.

Well-Intended but Unsustainable

Virtually all flood insurance is issued by the federal government under the National Flood Insurance Act of 1968. Intended to reduce federal disaster payouts, the program has actually promoted development in flood zones and thus worsened the devastation of natural disasters. Like most government giveaways—well-intended though it was—the National Flood Insurance Program (NFIP) is financially unsustainable, with a debt to taxpayers of $ 24 billion and counting.

Congress took steps in 2012 to reduce the subsidies and require rates to be based on a property’s degree of flood risk—an essential element of viable insurance. The Biggert–Water……….. continues on Heritage.org.

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