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1 1 (September 02, 2020)

handle is hein.crs/govdbrf0001 and id is 1 raw text is: Researh Sevice National Flood Insurance Program Borrowing Authority Updated September 2, 2020 This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the Treasury and the current financial situation of the NFIR NFIP Funding Funding for the NFIP is primarily maintained in an authorized account called the National Flood Insurance Ftnd (NFIF). The NFIP is funded from receipts from the premiums of flood insurance policies, including fees and surcharges; direct annual appropriations for specific costs of the NFIP (only for flood mapping); and borrowing from the Treasury when the NFIF's balance has been insufficient to pay the NFIP's obligations (e.g., insurance claims). Since the end of FY2017, 15 short-term NFIP reauthorizations have been enacted. For further details of these reauthorizations, see CRS Insight IN10835, What Happens If the National Flood Insurance Program (NFIP) Lapses? The current reauthorization is set to expire on Sept. 30, 2020. These extensions did not increase the NFIP's borrowing limit or provide additional funds to the NFIP NFIP Borrowing Authority 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 Treasury for such events. For most of the NFIP's history, the program has been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims and to repay the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2020. Comparable figures are not available before 1980. When the NFIP was established, the borrowing limit was $250 million. In 1973, the borrowing limit was increased to $500 million, or SI billion with Presidential approval. The borrowing limit was increased to $1.5 billion in 1996; however, borrowing at that level was not required before 2005. The largest debt was $917 million in 1997, which was reduced to zero by the end of FY2003. However, Congress increased the level of borrowing to pay claims in the aftermath of the 2005 hurricane season (particularly Hurricanes Katrina, Rita, and Wilma). Congress increased the borrowing limit to $18.5 billion in November 2005 and further increased the borrowing limit to $20.775 billion in March Congressional Research Service https://crsreports.congress.gov IN10784 CRS NS GHT Prpred For Meumbers and Comrm ttees of Conress ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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