FEMA: Hurricane Harvey Could Cost NFIP $11B

The Federal Emergency Management Agency estimates that the total cost to the National Flood Insurance Program following Hurricane Harvey could total as much as $11 billion, according to reports today, exceeding the program’s current borrowing authority and likely requiring Congress to approve an increase.

FEMA Director Roy Wright noted that the NFIP currently has $5.8 billion remaining under its $30 billion borrowing authority, in addition to about $1.5 billion in on-hand cash that can be used to pay claims. Thus far, FEMA has had 84,000 claims from Harvey damage, totaling $177 million in initial payments, a number that Wright said he expects to “climb very, very rapidly.”


About Author

Monica C. Meinert

Monica C. Meinert is deputy editor of the ABA Banking Journal and editorial director at the American Bankers Association, where she oversees ABA Daily Newsbytes.