Flooding the zone
The announcement last week from Homeland Security Secretary Kristi Noem that she plans to “eliminate” the Federal Emergency Management Agency (FEMA) has cast a pall over the US government’s disaster response unit.
While most of the focus has been on what it would mean for disaster recovery if the agency is wound down, there’s another big issue at stake: FEMA’s foundational role in managing the National Flood Insurance Program (NFIP). Any changes to the program or how it’s run can potentially disrupt the lives of millions of homeowners living in flood-prone areas.
Congress created the program in 1968 because private insurance for flood risk failed; insurers simply couldn’t price policies affordably enough for most homeowners. The government stepped in and offered subsidized rates. As of the end of 2023, according to FEMA’s website, it held 4.7 million policies and $1.3 trillion in liability.
Bloomberg Green
By Leslie Kaufman
March 31, 2025