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1 1 (Updated October 8, 2024)

handle is hein.crs/goveqxo0001 and id is 1 raw text is: National Flood Insurance Program Borrowing Authority Updated October 8, 2024 This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the Treasury and the current financial situation ofthe NFIP. NFIP Funding Funding for the NFIP is primarily maintained in an authorized account called the National Flood Insurance Fund (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 Treasury when the NFIF's balance has been insufficient to pay the NFIP's obligations (e.g., insurance claims). Since the end of FY2017, 31 short-term NFIP reauthorizations have been enacted. For further details of these reauthorizations, see CRS Insight IN10835, WhatHappens If the National Flood Insurance Program (NFIP) Lapses? The current reauthorization is set to expire on December 20, 2024. These extensions did not increase the NFIP's borrowing limit or provide additional funds to the NFIP. As of September 30, 2024, the NFIP had $5.001 billion available to pay claims, with $1.339 billion in the NFIF and $3.662 billion in the Reserve Fund, and can borrow up to $9.9 billion from Treasury, if needed. 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 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 Treasury to pay claims and to repay the loans with interest. Only current and future participants in the NFIP are responsible for repaying NFIP debt, as the insurance program itself owes the debt to Treasury and pays for accruing interest on that debt through the premium revenues of policyholders. Since 2005, the NFIP has made six principal repayments totaling $2.82 billion and has paid Congressional Research Service https://crsreports.congress.gov IN10784 CRS INSIGHT Prepared for Members and Committees of Congress

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