FEMA Administrator Long Issues Statement on National Flood Insurance Program

WASHINGTON, July 20 -- The U.S. Department of Homeland Security's Federal Emergency Management Agency issued the following statement by Administrator Brock Long:

"The current statutory authority granted to the Federal Emergency Management Agency for the National Flood Insurance Program (NFIP) will expire at 11:59 p.m. on July 31, 2018. This lapse will only be prevented if Congress renews the authority by that date. As the Congress considers legislation to reauthorize the program, the Administration continues to strongly support reforms to the program to ensure its long-term viability. As currently structured, the NFIP cannot handle catastrophic losses like those caused by the devastating hurricanes in 2017.

"Serious consequences will result if Congress fails to reauthorize the NFIP beyond July 31. Many individuals, families, businesses and local communities will find themselves left vulnerable to the devastating effects of flooding, because, the NFIP will be unable to issue new policies, renew existing policies, or increase coverage on existing policies. In addition, some real estate transactions will be affected. The Flood Disaster Protection Act of 1973 prohibits a federally-backed lender from making, increasing, extending, or renewing a federally-backed loan secured by property located in Special Flood Hazard Areas unless the property is covered by flood insurance. There would also be serious long term consequences regarding floodplain management and mitigation activities and grant awards, and if needed, the NFIP would be unable to borrow from the U.S. Treasury to pay claims for existing policies.

"Let me reassure current NFIP policyholders that existing flood insurance policies would remain valid regardless of a lapse going into effect. If a lapse were to occur, policies that are in force before midnight on July 31, 2018, would remain in force. The NFIP would process and pay flood insurance claims from the National Flood Insurance Fund and the National Flood Insurance Reserve Fund during a lapse until these funds were depleted.

"FEMA and Congress have never failed to honor the flood insurance policies in place with NFIP policyholders. Therefore, as we enter into the busiest period of hurricane season, I ask Congress to resolve this quickly."