Congressional Research Service Issues Insight White Paper on National Flood Insurance Program Borrowing Authority
Here are excerpts:
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This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the
NFIP Funding
Funding for the NFIP is primarily maintained in an authorized account called the
The NFIP was not designed to retain funding to cover claims for truly extreme events; instead, the National Flood Insurance Act of 1968 allows the program to borrow money from the
Table 1 shows NFIP borrowing, repayments, and debt from FY1980 to FY2022. Comparable figures are not available before 1980. When the NFIP was established, the borrowing limit was
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Table 1. NFIP Borrowing FY1980 to FY1998 (nominal dollars)
Sources: CRS analysis: data 1980-2017 provided by FEMA Congressional Affairs,
a. The
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In
The NFIP currently has
The NFIP transfers a portion of its risk to the private sector through the purchase of reinsurance and the issuance of catastrophe bonds. The NFIP's first large reinsurance purchase was in
The NFIP could claim up to
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The white paper is posted at: https://crsreports.congress.gov/product/pdf/IN/IN10784
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