Rep. Hensarling: Flood Insurance Program Takes Another $1.6 Billion from Taxpayers

WASHINGTON, Jan. 17 -- Rep. Jeb Hensarling, R-Texas, chairman of the House Financial Services Committee, issued the following news release:

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House Financial Services Committee Chairman Jeb Hensarling (R-TX) issued the following statement today regarding news that the National Flood Insurance Program (NFIP) will borrow another $1.6 billion from hardworking American taxpayers:

"The National Flood Insurance Program is poorly designed, costly and in desperate need of fundamental reform. A market monopoly and an annual deficit from more than four decades of liberal subsidies have resulted in $23 billion in debt to taxpayers before today's new borrowing -- debt the flood insurance program openly admits its current structure can never afford to repay.

"As a result, the roughly 96 percent of all American households outside the NFIP are forced to subsidize the four percent in the NFIP, regardless of their income. That means a single mom working hard to put food on the table for her kids is forced to pay for insurance for some millionaire's beachfront vacation home. If that's not the definition of unfair, then I don't know what is.

"Reforming this unfair, unsustainable and bailout broke government monopoly will be a major focus for the House Financial Services Committee in 2017. We will pass legislation that begins the transition to a competitive, innovative and sustainable flood insurance market that gives consumers real choices."

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