Flood Insurance: Harvey Plays Into Partisan Divide On National Program

"Devastation caused by Tropical Storm Harvey will only exacerbate congressional debate over flood insurance reform, likely forcing lawmakers to pass a short-term extension before the federal program expires at the end of September.

The National Flood Insurance Program is currently $24.6 billion in debt, and lawmakers are divided about how to address the problem. House Financial Services Chairman Jeb Hensarling (R-Texas) has argued for either limiting subsidized premium rates or allowing more private insurers to enter the market. Democrats like ranking member Maxine Waters of California, however, have suggested forgiving the debt.

Bills passed by the House committee in June largely represent that Republican point of view. They would accelerate the development of a private flood insurance market and end grandfathering for new construction within four years."

Ariel Wittenberg reports for Greenwire August 29, 2017.