The National Flood Insurance Program has depleted its capacity to borrow from the Treasury Department following the destruction of Hurricanes Harvey, Irma and Maria, according to the Federal Emergency Management Agency. The NFIP borrowed $5.8 billion on Sept. 20 to fund losses and has bumped up against its statutory borrowing cap of $30 billion.
“Ultimately, the claims payments on Harvey and Irma will exceed the current spending authorities of the National Flood Insurance Program,” a FEMA spokesman told Politico. “We will be collaborating with Congress so that every claim is paid in full.”
The NFIP has paid more than 88,000 claims totaling $925 million in Texas and Louisiana, and it has to date paid $26 million on 25,000 claims submitted from Florida, Georgia, South Carolina, Alabama, Puerto Rico and the U.S. Virgin Islands. The NFIP has been temporarily reauthorized through Dec. 8.