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"EveryCRSReport.com", "id": 612396, "date": "2019-12-30", "retrieved": "2020-01-04T23:16:48.412410", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the Treasury and the current financial situation of the NFIP. \nNFIP Funding\nFunding 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 the Treasury when the NFIF\u2019s balance has been insufficient to pay the NFIP\u2019s obligations (e.g., insurance claims). Since the end of FY2017, 15 short-term NFIP reauthorizations have been enacted. Key provisions of the NFIP were extended from September 30 until December 8, 2017 (P.L. 115-56), extended again until December 22, 2017 (P.L. 115-90), and again until January 19, 2018 (P.L. 115-96). The NFIP lapsed between January 20 and January 22, 2018, and received a fourth short-term reauthorization until February 8, 2018 (P.L. 115-120). The NFIP lapsed again for eight hours during a brief government shutdown on February 9, 2018, and was then reauthorized until March 23, 2018 (P.L. 115-123). The NFIP received a 6th reauthorization until July 31, 2018 (P.L. 115-141), a 7th until November 30, 2018 (P.L. 115-225), an 8th until December 7, 2018 (P.L. 115-281), a 9th until December 21, 2018 (P.L. 115-298), a 10th until May 31, 2019 (P.L. 115-396), an 11th until June 14, 2019 (P.L. 116-19), a 12th until September 30, 2019 (P.L. 116-20), a 13th until November 21, 2019 (P.L. 116-59), a 14th until December 20, 2019 (P.L. 116-69), and a 15th reauthorization until September 30, 2020 (P.L. 116-93). These extensions did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP.\nNFIP Borrowing Authority\nThe 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\u2019s 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 2019. 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 $1 billion with the approval of the President. 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. Since 2005, the NFIP has made six principal repayments totaling $2.82 billion and has paid $4.4 billion in interest. The program pays nearly $400 million annually in interest. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n0\n265,000,000\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2019\n(nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n7,425,000,000\n0\n30,425,000,000\n\n2018\n6,100,000,000\n16,000,000,000a\n20,525,000,000\n\n2019\n0\n0\n20,525,000,000\n\nSource: Data 1980-2017 provided by FEMA Congressional Affairs, November 20, 2017. Data 2017 to present from NFIP Watermark financial statements.\nThe $16 billion of debt was cancelled rather than repaid (P.L. 115-72, Title III, \u00a7308).\nHurricanes Harvey, Irma, and Maria\nIn January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 and debt repayments. On September 22, 2017, FEMA borrowed the remaining $5.825 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. On October 26, 2017, $16 billion of NFIP debt was canceled to make it possible for the program to pay claims for Hurricanes Harvey, Irma, and Maria. This represents the first time NFIP debt has been canceled, although Congress appropriated funds between 1980 and 1985 to repay NFIP debt. FEMA borrowed another $6.1 billion on November 9, 2017, to fund estimated 2017 losses, including those incurred by Hurricanes Harvey, Irma, and Maria, increasing the debt to $20.525 billion. The NFIP currently has $9.9 billion of remaining borrowing authority. \nIn January 2017, FEMA paid a $150 million premium to purchase $1.042 billion of reinsurance. The contract was structured to pay 26% of losses between $4 billion and $8 billion arising from a single flooding event. Claims for Hurricane Harvey exceeded $8 billion, triggering a full reinsurance claim. FEMA has not claimed on the 2018 and 2019 reinsurance purchases, as no named storms in 2018 or 2019 reached the threshold of $4 billion in claims.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/IN10784", "sha1": "f7ff7792cf91ce7366073fe989fb37a484605e39", "filename": "files/20191230_IN10784_f7ff7792cf91ce7366073fe989fb37a484605e39.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/IN10784", "sha1": "1b9cf68d588f08dda3cf47baaf4515236a006ab4", "filename": "files/20191230_IN10784_1b9cf68d588f08dda3cf47baaf4515236a006ab4.pdf", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 610145, "date": "2019-12-05", "retrieved": "2019-12-13T15:05:57.202740", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the Treasury and the current financial situation of the NFIP. \nNFIP Funding\nFunding 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 the Treasury when the NFIF\u2019s balance has been insufficient to pay the NFIP\u2019s obligations (e.g., insurance claims). Since the end of FY2017, 14 short-term NFIP reauthorizations have been enacted. Key provisions of the NFIP were extended from September 30 until December 8, 2017 (P.L. 115-56), extended again until December 22, 2017 (P.L. 115-90), and again until January 19, 2018 (P.L. 115-96). The NFIP lapsed between January 20 and January 22, 2018, and received a fourth short-term reauthorization until February 8, 2018 (P.L. 115-120). The NFIP lapsed again for eight hours during a brief government shutdown on February 9, 2018, and was then reauthorized until March 23, 2018 (P.L. 115-123). The NFIP received a sixth reauthorization until July 31, 2018 (P.L. 115-141), a seventh until November 30, 2018 (P.L. 115-225), an eighth until December 7, 2018 (P.L. 115-281), a ninth until December 21, 2018 (P.L. 115-298), a tenth until May 31, 2019 (P.L. 115-396), an eleventh until June 14, 2019 (P.L. 116-19), a twelfth until September 30, 2019 (P.L. 116-20), a thirteenth reauthorization until November 21, 2019 (P.L. 116-59), and a fourteenth reauthorization until December 20, 2019 (P.L. 116-69). These extensions did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP.\nNFIP Borrowing Authority\nThe 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\u2019s history, the program has generally been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims, and then repaying the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2018. 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 $1 billion with the approval of the President. 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. Since the 2005 hurricane season, the NFIP has made six principal repayments totaling $2.82 billion and has paid $4.2 billion in interest. The program is currently paying nearly $400 million annually in interest. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n0\n265,000,000\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2018\n(nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n7,425,000,000\n0\n30,425,000,000\n\n2018\n6,100,000,000\n16,000,000,000a\n20,525,000,000\n\n2019\n0\n0\n20,525,000,000\n\nSource: Data 1980-2017 provided by FEMA Congressional Affairs, November 20, 2017. Data 2017 to present from NFIP Watermark financial statements.\nThe $16 billion of debt was cancelled rather than repaid (P.L. 115-72, Title III, \u00a7308).\nHurricanes Harvey, Irma, and Maria\nIn January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 (Louisiana floods and Hurricane Matthew) and debt repayments. On September 22, 2017, FEMA borrowed the remaining $5.825 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. On October 26, 2017, $16 billion of NFIP debt was canceled to make it possible for the program to pay claims for Hurricanes Harvey, Irma, and Maria. This represents the first time that NFIP debt has been canceled, although Congress appropriated funds between 1980 and 1985 to repay NFIP debt. FEMA borrowed another $6.1 billion on November 9, 2017, to fund estimated 2017 losses, including those incurred by Hurricanes Harvey, Irma, and Maria, increasing the debt to $20.525 billion. The NFIP currently has $9.9 billion of remaining borrowing authority. \nIn January 2017, FEMA paid a $150 million premium to purchase $1.042 billion of reinsurance. The contract was structured to pay 26% of losses between $4 billion and $8 billion arising from a single flooding event. Claims for Hurricane Harvey exceeded $8 billion, triggering a full reinsurance claim. FEMA has not claimed on the 2018 reinsurance purchases, as no named storms in 2018 reached the threshold of $4 billion in claims.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/IN10784", "sha1": "6af7fd361571fa05ec6d96b1ac0a799fb2bc1e84", "filename": "files/20191205_IN10784_6af7fd361571fa05ec6d96b1ac0a799fb2bc1e84.html", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 606052, "date": "2019-10-09", "retrieved": "2019-10-10T22:15:48.839702", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the Treasury and the current financial situation of the NFIP. \nNFIP Funding\nFunding 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 the Treasury when the NFIF\u2019s balance has been insufficient to pay the NFIP\u2019s obligations (e.g., insurance claims). Since the end of FY2017, 12 short-term NFIP reauthorizations have been enacted. Key provisions of the NFIP were extended from September 30 until December 8, 2017 (Section 130 of P.L. 115-56), extended again until December 22, 2017 (P.L. 115-90), and again until January 19, 2018 (P.L. 115-96). The NFIP lapsed between January 20 and January 22, 2018, and received a fourth short-term reauthorization until February 8, 2018 (P.L. 115-120). The NFIP lapsed again for approximately eight hours during a brief government shutdown in the early morning of February 9, 2018, and was then reauthorized until March 23, 2018 (P.L. 115-123). The NFIP received a sixth reauthorization until July 31, 2018 (P.L. 115-141), a seventh until November 30, 2018 (P.L. 115-225), an eighth until December 7, 2018 (P.L. 115-281), a ninth until December 21, 2018 (P.L. 115-298), a tenth until May 31, 2019 (P.L. 115-396), an eleventh until June 14, 2019 (P.L. 116-19), a twelfth until September 30, 2019 (P.L. 116-20), and a thirteenth reauthorization until November 21, 2019 (P.L. 116-59). These extensions did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP.\nNFIP Borrowing Authority\nThe 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\u2019s history, the program has generally been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims, and then repaying the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2018. 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 $1 billion with the approval of the President. The borrowing limit was increased to $1.5 billion in 1996; however, borrowing at that level was not required prior to 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. Since the 2005 hurricane season, the NFIP has made six principal repayments totaling $2.82 billion and has paid $4.2 billion in interest. The program is currently paying nearly $400 million annually in interest. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n0\n265,000,000\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2018\n(nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n7,425,000,000\n0\n30,425,000,000\n\n2018\n6,100,000,000\n16,000,000,000a\n20,525,000,000\n\n2019\n0\n0\n20,525,000,000\n\nSource: Data 1980-2017 provided by FEMA Congressional Affairs, November 20, 2017. Data 2017 to present from NFIP Watermark financial statements.\nThe $16 billion of debt was cancelled rather than repaid (P.L. 115-72, Title III, \u00a7308).\nHurricanes Harvey, Irma, and Maria\nIn January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 (Louisiana floods and Hurricane Matthew) and debt repayments. On September 22, 2017, FEMA borrowed the remaining $5.825 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. On October 26, 2017, $16 billion of NFIP debt was canceled to make it possible for the program to pay claims for Hurricanes Harvey, Irma, and Maria. This represents the first time that NFIP debt has been canceled, although Congress appropriated funds between 1980 and 1985 to repay NFIP debt. FEMA borrowed another $6.1 billion on November 9, 2017, to fund estimated 2017 losses, including those incurred by Hurricanes Harvey, Irma, and Maria, increasing the debt to $20.525 billion. The NFIP currently has $9.9 billion of remaining borrowing authority. \nIn January 2017, FEMA paid a $150 million premium to purchase $1.042 billion of reinsurance. The contract was structured to pay 26% of losses between $4 billion and $8 billion arising from a single flooding event. Claims for Hurricane Harvey exceeded $8 billion, triggering a full reinsurance claim. FEMA has not claimed on the 2018 reinsurance purchases, as no named storms in 2018 reached the threshold of $4 billion in claims.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/IN10784", "sha1": "80ffebf6c7360e91f7b645da3756f815647bda60", "filename": "files/20191009_IN10784_80ffebf6c7360e91f7b645da3756f815647bda60.html", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 603145, "date": "2019-08-01", "retrieved": "2019-08-12T22:10:48.403484", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the U.S. Department of the Treasury and the current financial situation of the NFIP. \nNFIP Funding\nFunding for the NFIP is primarily maintained in an authorized account called the National Flood Insurance Fund (NFIF). Generally, the NFIP has been funded from receipts from the premiums of flood insurance policies, including fees and surcharges; direct annual appropriations for specific costs of the NFIP (currently only flood mapping); and borrowing from the Treasury when the NFIF\u2019s balance has been insufficient to pay the NFIP\u2019s obligations (e.g., insurance claims). Since the end of FY2017, 12 short-term NFIP reauthorizations have been enacted. Key provisions of the NFIP were extended from September 30 until December 8, 2017 (Section 130 of P.L. 115-56), extended again until December 22, 2017 (P.L. 115-90), and again until January 19, 2018 (P.L. 115-96). The NFIP lapsed between January 20 and January 22, 2018, and received a fourth short-term reauthorization until February 8, 2018 (P.L. 115-120). The NFIP lapsed again for approximately eight hours during a brief government shutdown in the early morning of February 9, 2018, and was then reauthorized until March 23, 2018 (P.L. 115-123). The NFIP received a sixth reauthorization until July 31, 2018 (P.L. 115-141), a seventh until November 30, 2018 (P.L. 115-225), an eighth until December 7, 2018 (P.L. 115-281), a ninth until December 21, 2018 (P.L. 115-298), a tenth until May 31, 2019 (P.L. 115-396), an eleventh until June 14, 2019 (P.L. 116-19), and a twelfth reauthorization until September 30, 2019 (P.L. 116-20). However, these extensions did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP.\nNFIP Borrowing Authority\nThe 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\u2019s history, the program has generally been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims, and then repaying the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2018. Comparable figures are not available before 1980. When the NFIP was first established, the borrowing limit was $250 million. In 1973, the borrowing limit was increased to $500 million, or $1 billion with the approval of the President. The borrowing limit was increased to $1.5 billion in 1996; however, borrowing at that level was not required prior to 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. The Biggert-Waters Flood Insurance Reform Act of 2012 established a reserve fund to cover future expenses, especially those from catastrophic disasters. Since the 2005 hurricane season, the NFIP has made six principal repayments totaling $2.82 billion and has paid $4.2 billion in interest. The program is currently paying nearly $400 million annually in interest. In January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 (Louisiana floods and Hurricane Matthew) and debt repayments. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n0\n265,000,000\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2018\n(nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n7,425,000,000\n0\n30,425,000,000\n\n2018\n6,100,000,000\n16,000,000,000a\n20,525,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nThe $16 billion of debt was cancelled rather than repaid (P.L. 115-72, Title III, \u00a7308).\nHurricanes Harvey, Irma, and Maria\nOn September 22, 2017, FEMA borrowed the remaining $5.825 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. On October 26, 2017, $16 billion of NFIP debt was canceled to make it possible for the program to pay claims for Hurricanes Harvey, Irma, and Maria. This represents the first time that NFIP debt has been canceled, although Congress appropriated funds between 1980 and 1985 to repay NFIP debt. FEMA borrowed another $6.1 billion on November 9, 2017, to fund estimated 2017 losses, including those incurred by Hurricanes Harvey, Irma, and Maria, increasing the debt to $20.525 billion. The NFIP currently has $9.9 billion of remaining borrowing authority. \nIn January 2017, FEMA paid a $150 million premium to purchase $1.042 billion of reinsurance. The contract was structured to pay 26% of losses between $4 billion and $8 billion arising from a single flooding event. Claims for Hurricane Harvey exceeded $8 billion, triggering a full claim on the 2017 reinsurance. FEMA has not claimed on the 2018 reinsurance purchases.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/IN10784", "sha1": "5f1ae5a83df7b3490693c14eabd83bdef07f79a3", "filename": "files/20190801_IN10784_5f1ae5a83df7b3490693c14eabd83bdef07f79a3.html", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 594245, "date": "2019-01-14", "retrieved": "2019-04-17T14:35:01.754048", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the U.S. Department of the Treasury and discusses the current financial situation of the NFIP. \nNFIP Funding\nFunding for the NFIP is primarily maintained in an authorized account called the National Flood Insurance Fund (NFIF). Generally, the NFIP has been funded from receipts from the premiums of flood insurance policies, including fees and surcharges; direct annual appropriations for specific costs of the NFIP (currently only flood mapping); and borrowing from the Treasury when the balance of the NFIF has been insufficient to pay the NFIP\u2019s obligations (e.g., insurance claims). Key provisions of the NFIP were extended from September 30 until December 8, 2017 (Section 130 of P.L. 115-56), extended again until December 22, 2017 (P.L. 115-90), and again until January 19, 2018 (P.L. 115-96). The NFIP lapsed between January 20 and January 22, 2018, and received a fourth short-term reauthorization until February 8, 2018 (P.L. 115-120). The NFIP lapsed again for approximately eight hours during a brief government shutdown in the early morning of February 9, 2018, and was then reauthorized until March 23, 2018 (P.L. 115-123). The NFIP received a sixth reauthorization until July 31, 2018 (P.L. 115-141), a seventh until November 30, 2018 (P.L. 115-225), an eighth until December 7, 2018 (P.L. 115-281), a ninth until December 21, 2018 (P.L. 115-298), and a tenth reauthorization until May 31, 2019 (P.L. 115-396). However, these extensions did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP.\nNFIP Borrowing Authority\nThe 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\u2019s history, the program has generally been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims, and then repaying the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2018. Comparable figures are not available before 1980. When the NFIP was first established, the borrowing limit was $250 million. In 1973, the borrowing limit was increased to $500 million, or $1 billion with the approval of the President. The borrowing limit was increased to $1.5 billion in 1996; however, borrowing at that level was not required prior to 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. The Biggert-Waters Flood Insurance Reform Act of 2012 established a reserve fund to cover future expenses, especially those from catastrophic disasters. Since the 2005 hurricane season, the NFIP has made six principal repayments totaling $2.82 billion and has paid $4.2 billion in interest. The program is currently paying nearly $400 million annually in interest. In January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 (Louisiana floods and Hurricane Matthew) and debt repayments. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n265,000,000\n0\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2018\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n7,425,000,000\n0\n30,425,000,000\n\n2018\n6,100,000,000\n16,000,000,000a\n20,525,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nThe $16 billion of debt was cancelled rather than repaid (P.L. 115-72, Title III, \u00a7308).\nHurricanes Harvey, Irma, and Maria\nOn September 22, 2017, FEMA borrowed the remaining $5.825 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. On October 26, 2017, $16 billion of NFIP debt was cancelled to make it possible for the program to pay claims for Hurricanes Harvey, Irma, and Maria. This represents the first time that NFIP debt has been cancelled, although Congress appropriated funds between 1980 and 1985 to repay NFIP debt. FEMA borrowed another $6.1 billion on November 9, 2017, to fund estimated 2017 losses, including those incurred by Hurricanes Harvey, Irma, and Maria, increasing the debt to $20.525 billion. The NFIP currently has $9.9 billion of remaining borrowing authority. \nIn January 2017, FEMA paid a $150 million premium to purchase $1.042 billion of reinsurance. The contract was structured to pay 26% of the losses between $4 billion and $8 billion arising from a single flooding event. FEMA has already paid over $8.9 billion in claims for Hurricane Harvey, triggering a full claim on the 2017 reinsurance. In January 2018, FEMA paid a $235 million premium for $1.46 billion reinsurance. However, it is unlikely that 2018 hurricane losses will be high enough to claim the 2018 reinsurance.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/IN10784", "sha1": "71078722cd36f264b9fab380e578ad81440caf55", "filename": "files/20190114_IN10784_71078722cd36f264b9fab380e578ad81440caf55.html", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 589555, "date": "2019-01-08", "retrieved": "2019-01-08T18:07:26.625791", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the U.S. Department of the Treasury and discusses the current financial situation of the NFIP. \nNFIP Funding\nFunding for the NFIP is primarily maintained in an authorized account called the National Flood Insurance Fund (NFIF). Generally, the NFIP has been funded from receipts from the premiums of flood insurance policies, including fees and surcharges; direct annual appropriations for specific costs of the NFIP (currently only flood mapping); and borrowing from the Treasury when the balance of the NFIF has been insufficient to pay the NFIP\u2019s obligations (e.g., insurance claims). Key provisions of the NFIP were extended from September 30 until December 8, 2017 (Section 130 of P.L. 115-56), extended again until December 22, 2017 (P.L. 115-90), and again until January 19, 2018 (P.L. 115-96). The NFIP lapsed between January 20 and January 22, 2018, and received a fourth short-term reauthorization until February 8, 2018 (P.L. 115-120). The NFIP lapsed again for approximately eight hours during a brief government shut-down in the early morning of February 9 and was then reauthorized until March 23, 2018 (P.L. 115-123). The NFIP received a sixth reauthorization until July 31, 2018 (P.L. 115-141), a seventh until November 30, 2018 (P.L. 115-225), an eighth until December 7, 2018 (P.L. 115-281), a ninth until December 21, 2018 (P.L. 115-298), and a tenth reauthorization until May 30, 2019 (S. 3628). However, these extensions did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP.\nNFIP Borrowing Authority\nThe 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\u2019s history, the program has generally been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims, and then repaying the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2018. Comparable figures are not available before 1980. When the NFIP was first established, the borrowing limit was $250 million. In 1973, the borrowing limit was increased to $500 million, or $1 billion with the approval of the President. The borrowing limit was increased to $1.5 billion in 1996; however, borrowing at that level was not required prior to 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. The Biggert-Waters Flood Insurance Reform Act of 2012 established a reserve fund to cover future expenses, especially those from catastrophic disasters. Since the 2005 hurricane season, the NFIP has made six principal repayments totaling $2.82 billion and has paid $4.2 billion in interest. The program is currently paying nearly $400 million annually in interest. In January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 (Louisiana floods and Hurricane Matthew) and debt repayments. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n265,000,000\n0\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2018\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n7,425,000,000\n0\n30,425,000,000\n\n2018\n6,100,000,000\n16,000,000,000a\n20,525,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nThe $16 billion of debt was cancelled rather than repaid (P.L. 115-72, Title III, \u00a7308).\nHurricanes Harvey, Irma, and Maria\nOn September 22, 2017, FEMA borrowed the remaining $5.825 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. On October 26, 2017, $16 billion of NFIP debt was cancelled to make it possible for the program to pay claims for Hurricanes Harvey, Irma, and Maria. This represents the first time that NFIP debt has been cancelled, although Congress appropriated funds between 1980 and 1985 to repay NFIP debt. FEMA borrowed another $6.1 billion on November 9, 2017, to fund estimated 2017 losses, including those incurred by Hurricanes Harvey, Irma, and Maria, increasing the debt to $20.525 billion. The NFIP currently has $9.9 billion of remaining borrowing authority. \nIn January 2017, FEMA paid a $150 million premium to purchase $1.042 billion of reinsurance. The contract was structured to pay 26% of the losses between $4 billion and $8 billion arising from a single flooding event. FEMA has already paid over $8.9 billion in claims for Hurricane Harvey, triggering a full claim on the 2017 reinsurance. In January 2018, FEMA paid a $235 million premium for $1.46 billion reinsurance. However, it is unlikely that 2018 hurricane losses will be high enough to claim the 2018 reinsurance.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/IN10784", "sha1": "d4fb02d4f468c00bf696323e14a224291d0f4b23", "filename": "files/20190108_IN10784_d4fb02d4f468c00bf696323e14a224291d0f4b23.html", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 584800, "date": "2018-09-10", "retrieved": "2018-09-12T22:17:06.855514", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the U.S. Department of the Treasury, particularly in the context of major floods, and discusses the current financial situation of the NFIP. \nNFIP Funding\nFunding for the NFIP is primarily maintained in an authorized account called the National Flood Insurance Fund (NFIF). Generally, the NFIP has been funded from receipts from the premiums of flood insurance policies, including fees and surcharges; direct annual appropriations for specific costs of the NFIP (currently only flood mapping); and borrowing from the Treasury when the balance of the NFIF has been insufficient to pay the NFIP\u2019s obligations (e.g., insurance claims). Key provisions of the NFIP were extended from September 30 until December 8, 2017 (Section 130 of P.L. 115-56), extended again until December 22, 2017 (P.L. 115-90), and again until January 19, 2018 (P.L. 115-96). The NFIP lapsed between January 20 and January 22, 2018, and received a fourth short-term reauthorization until February 8, 2018 (P.L. 115-120). The NFIP lapsed again for approximately eight hours during a brief government shut-down in the early morning of February 9 and was then reauthorized until March 23, 2018 (P.L. 115-123). The NFIP received a sixth reauthorization until July 31, 2018 (P.L. 115-141), and a seventh reauthorization until November 30, 2018 (P.L. 115-225). However, these extensions did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP.\nNFIP Borrowing Authority\nThe 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\u2019s history, the program has generally been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims, and then repaying the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2017. Comparable figures are not available before 1980. When the NFIP was first established, the borrowing limit was $250 million. In 1973, the borrowing limit was increased to $500 million, or $1 billion with the approval of the President. The borrowing limit was increased to $1.5 billion in 1996; however, borrowing at that level was not required prior to 2005. The largest debt was $917 million in 1997, which was steadily 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. The Biggert-Waters Flood Insurance Reform Act of 2012 established a reserve fund to cover future expenses, especially those from catastrophic disasters. Since the 2005 hurricane season, the NFIP has made six principal repayments totaling $2.82 billion and has paid $3.83 billion in interest. The program is currently paying nearly $400 million annually in interest. In January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 (the Louisiana floods and Hurricane Matthew) and debt repayments. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n265,000,000\n0\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2018\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n7,425,000,000\n0\n30,425,000,000\n\n2018\n6,100,000,000\n16,000,000,000a\n20,525,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nThe $16 billion of debt was cancelled rather than repaid (P.L. 115-72, Title III, \u00a7308).\nHurricanes Harvey, Irma, and Maria\nOn September 22, 2017, FEMA borrowed the remaining $5.825 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. On October 26, 2017, $16 billion of NFIP debt was cancelled to make it possible for the program to pay claims for Hurricanes Harvey, Irma, and Maria. This represents the first time that NFIP debt has been cancelled, although Congress appropriated funds between 1980 and 1985 to repay NFIP debt. FEMA borrowed another $6.1 billion on November 9, 2017, to fund estimated 2017 losses, including those incurred by Hurricanes Harvey, Irma, and Maria, bringing the debt up to $20.525 billion. The NFIP currently has $9.9 billion of remaining borrowing authority. \nIn January 2017, FEMA paid a $150 million premium to purchase $1.042 billion of reinsurance. The contract was structured to pay 26% of the losses between $4 billion and $8 billion arising from a single flooding event. FEMA has already paid over $8.7 billion in claims for Hurricane Harvey, triggering a full claim on the 2017 reinsurance. FEMA projects total NFIP claims for Hurricane Harvey of $8.7 to $9.01 billion, for Hurricane Irma of $1.003 to $1.04 billion, and for Hurricane Maria of $25 to $34 million.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/IN10784", "sha1": "f139dc317f9774a6043d7dee4dba9aac70f39e20", "filename": "files/20180910_IN10784_f139dc317f9774a6043d7dee4dba9aac70f39e20.html", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 583457, "date": "2018-07-31", "retrieved": "2018-08-07T13:41:40.264561", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the U.S. Department of the Treasury, particularly in the context of major floods, and discusses the current financial situation of the NFIP. \nNFIP Funding\nFunding for the NFIP is primarily maintained in an authorized account called the National Flood Insurance Fund (NFIF). Generally, the NFIP has been funded from receipts from the premiums of flood insurance policies, including fees and surcharges; direct annual appropriations for specific costs of the NFIP (currently only flood mapping); and borrowing from the Treasury when the balance of the NFIF has been insufficient to pay the NFIP\u2019s obligations (e.g., insurance claims). Key provisions of the NFIP were extended from September 30 until December 8, 2017 (Section 130 of P.L. 115-56), extended again until December 22, 2017 (P.L. 115-90), and again until January 19, 2018 (P.L. 115-96). The NFIP lapsed between January 20 and January 22, 2018, and received a fourth short-term reauthorization until February 8, 2018 (P.L. 115-120). The NFIP lapsed again for approximately eight hours during a brief government shut-down in the early morning of February 9 and was then reauthorized until March 23, 2018 (P.L. 115-123). The NFIP received a sixth reauthorization until July 31, 2018 (P.L. 115-141), and a seventh reauthorization until November 30, 2018 (P.L. 115-225). However, these extensions did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP.\nNFIP Borrowing Authority\nThe 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\u2019s history, the program has generally been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims, and then repaying the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2017. Comparable figures are not available before 1980. When the NFIP was first established, the borrowing limit was $250 million. In 1973, the borrowing limit was increased to $500 million, or $1 billion with the approval of the President. The borrowing limit was increased to $1.5 billion in 1996; however, borrowing at that level was not required prior to 2005. The largest debt was $917 million in 1997, which was steadily 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. The Biggert-Waters Flood Insurance Reform Act of 2012 established a reserve fund to cover future expenses, especially those from catastrophic disasters. Since the 2005 hurricane season, the NFIP has made six principal repayments totaling $2.82 billion and has paid $3.83 billion in interest. The program is currently paying nearly $400 million annually in interest. In January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 (the Louisiana floods and Hurricane Matthew) and debt repayments. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n265,000,000\n0\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2018\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n13,525,000,000\n16,000,000,000a\n20,525,000,000\n\n2018\n0\n0\n20,525,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nThe $16 billion of debt was cancelled rather than repaid (P.L. 115-72, Title III, \u00a7308).\nHurricanes Harvey, Irma, and Maria\nOn September 22, 2017, FEMA borrowed the remaining $5.825 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. On October 26, 2017, $16 billion of NFIP debt was cancelled to make it possible for the program to pay claims for Hurricanes Harvey, Irma, and Maria. This represents the first time that NFIP debt has been cancelled, although Congress appropriated funds between 1980 and 1985 to repay NFIP debt. FEMA borrowed another $6.1 billion on November 9, 2017, to fund estimated 2017 losses, including those incurred by Hurricanes Harvey, Irma, and Maria, bringing the debt up to $20.525 billion. The NFIP currently has $9.9 billion of remaining borrowing authority. \nIn January 2017, FEMA paid a $150 million premium to purchase $1.042 billion of reinsurance. The contract was structured to pay 26% of the losses between $4 billion and $8 billion arising from a single flooding event. FEMA has already paid over $8.6 billion in claims for Hurricane Harvey, triggering a full claim on the 2017 reinsurance. FEMA projects total NFIP claims for Hurricane Harvey of $8.7 to $9.01 billion, for Hurricane Irma of $1.003 to $1.04 billion, and for Hurricane Maria of $25 to $34 million.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/IN10784", "sha1": "e4f5696631c46cc4e4e5565683baa5f92ca9516d", "filename": "files/20180731_IN10784_e4f5696631c46cc4e4e5565683baa5f92ca9516d.html", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 580241, "date": "2018-04-16", "retrieved": "2018-05-10T10:37:59.982243", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the U.S. Department of the Treasury, particularly in the context of major floods, and discusses the current financial situation of the NFIP. \nNFIP Funding\nFunding for the NFIP is primarily maintained in an authorized account called the National Flood Insurance Fund (NFIF). Generally, the NFIP has been funded from receipts from the premiums of flood insurance policies, including fees and surcharges; direct annual appropriations for specific costs of the NFIP (currently only flood mapping); and borrowing from the Treasury when the balance of the NFIF has been insufficient to pay the NFIP\u2019s obligations (e.g., insurance claims). Key provisions of the NFIP were extended from September 30 until December 8, 2017 (Section 130 of P.L. 115-56), extended again until December 22, 2017 (P.L. 115-90), and again until January 19, 2018 (P.L. 115-96). The NFIP lapsed between January 20 and January 22, 2018, and received a fourth short-term reauthorization until February 8, 2018 (P.L. 115-120). The NFIP lapsed again for approximately eight hours during a brief government shut-down in the early morning of February 9 and was then reauthorized until March 23, 2018 (P.L. 115-123). The NFIP received a sixth reauthorization until July 31, 2018 (P.L. 115-141). However, these extensions did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP.\nNFIP Borrowing Authority\nThe 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\u2019s history, the program has generally been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims, and then repaying the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2017. Comparable figures are not available before 1980. When the NFIP was first established, the borrowing limit was $250 million. In 1973, the borrowing limit was increased to $500 million, or $1 billion with the approval of the President. The borrowing limit was increased to $1.5 billion in 1996; however, borrowing at that level was not required prior to 2005. The largest debt was $917 million in 1997, which was steadily 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. The Biggert-Waters Flood Insurance Reform Act of 2012 established a reserve fund to cover future expenses, especially those from catastrophic disasters. Since the 2005 hurricane season, the NFIP has made six principal repayments totaling $2.82 billion and has paid $3.83 billion in interest. The program is currently paying nearly $400 million annually in interest. In January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 (the Louisiana floods and Hurricane Matthew) and debt repayments. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n265,000,000\n0\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2018\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n13,525,000,000\n16,000,000,000a\n20,525,000,000\n\n2018\n0\n0\n20,525,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nThe $16 billion of debt was cancelled rather than repaid (P.L. 115-72, Title III, \u00a7308).\nHurricanes Harvey, Irma, and Maria\nOn September 22, 2017, FEMA borrowed the remaining $5.825 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. On October 26, 2017, $16 billion of NFIP debt was cancelled to make it possible for the program to pay claims for Hurricanes Harvey, Irma, and Maria. This represents the first time that NFIP debt has been cancelled, although Congress appropriated funds between 1980 and 1985 to repay NFIP debt. FEMA borrowed another $6.1 billion on November 9, 2017, to fund estimated 2017 losses, including those incurred by Hurricanes Harvey, Irma, and Maria, bringing the debt up to $20.525 billion. The NFIP currently has $9.9 billion of remaining borrowing authority. \nIn January 2017, FEMA paid a $150 million premium to purchase $1.042 billion of reinsurance. The contract was structured to pay 26% of the losses between $4 billion and $8 billion arising from a single flooding event. FEMA has already paid over $8.6 billion in claims for Hurricane Harvey, triggering a full claim on the 2017 reinsurance. FEMA projects total NFIP claims for Hurricane Harvey of $8.7 to $8.84 billion, for Hurricane Irma of $1.003 to $1.04 billion, and for Hurricane Maria of $25 to $34 million.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/IN10784", "sha1": "d05089efdb64e172f2222cf42a5df28c0568650b", "filename": "files/20180416_IN10784_d05089efdb64e172f2222cf42a5df28c0568650b.html", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 578416, "date": "2018-02-13", "retrieved": "2018-02-15T14:10:22.014199", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the U.S. Department of the Treasury, particularly in the context of major floods, and discusses the current financial situation of the NFIP as it pays claims from Hurricanes Harvey, Irma, and Maria. \nNFIP Funding\nFunding for the NFIP is primarily maintained in an authorized account called the National Flood Insurance Fund (NFIF). Generally, the NFIP has been funded from receipts from the premiums of flood insurance policies, including fees and surcharges; direct annual appropriations for specific costs of the NFIP (currently only flood mapping); and borrowing from the Treasury when the balance of the NFIF has been insufficient to pay the NFIP\u2019s obligations (e.g., insurance claims). Key provisions of the NFIP were extended from September 30, 2017, through until December 8, 2017 (Section 130 of P.L. 115-56), extended again until December 22, 2017 (P.L. 115-90), and again until January 19, 2018 (P.L. 115-96). The NFIP lapsed between January 20 and January 22, 2018, and received a fourth short-term reauthorization until February 8, 2018 (P.L. 115-120). The NFIP lapsed again for approximately eight hours during a brief government shut-down in the early morning of February 9, 2018, and was then reauthorized until March 23, 2018 (P.L. 115-123). However, these extensions did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP.\nNFIP Borrowing Authority\nThe 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\u2019s history, the program has generally been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims, and then repaying the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2017. Comparable figures are not available before 1980. When the NFIP was first established, the borrowing limit was $250 million. In 1973, the borrowing limit was increased to $500 million, or $1 billion with the approval of the President. The borrowing limit was increased to $1.5 billion in 1996; however, borrowing at that level was not required prior to 2005. The largest debt was $917 million in 1997, which was steadily 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. The Biggert-Waters Flood Insurance Reform Act of 2012 established a reserve fund to cover future expenses, especially those from catastrophic disasters. Since the 2005 hurricane season, the NFIP has made six principal repayments totaling $2.82 billion and has paid $3.83 billion in interest. The program is currently paying nearly $400 million annually in interest. In January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 (the Louisiana floods and Hurricane Matthew) and anticipated programmatic activities, including debt repayments. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n265,000,000\n0\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2017\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n13,525,000,000\n16,000,000,000a\n20,525,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nThe $16 billion of debt was cancelled rather than repaid (P.L. 115-72, Title III, \u00a7308).\nHurricanes Harvey, Irma, and Maria\nOn September 22, 2017, FEMA borrowed the remaining $5.825 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. On October 26, 2017, $16 billion of NFIP debt was cancelled to make it possible for the program to pay claims for Hurricanes Harvey, Irma, and Maria. This represents the first time that NFIP debt has been cancelled, although Congress appropriated funds between 1980 and 1985 to repay NFIP debt. FEMA borrowed another $6.1 billion on November 9, 2017, to fund estimated 2017 losses, including those incurred by Hurricanes Harvey, Irma, and Maria and anticipated programmatic activities, bringing the debt up to $20.525 billion. The NFIP currently has $9.9 billion of remaining borrowing authority. \nThe funds currently available to the NFIP do not include additional resources that a recent reinsurance contract will provide. FEMA paid a $150 million premium to purchase $1.042 billion of reinsurance. The contract is structured to pay 26% of the losses between $4 billion and $8 billion arising from a single flooding event. Although it is too early to estimate the total costs associated with Hurricane Harvey or Hurricane Irma, FEMA has already paid over $8.2 billion in claims for Hurricane Harvey, triggering the 2017 reinsurance.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://crs.gov/Reports/IN10784", "sha1": "315ef5804323ca9c8848bd2d5c4695419d2273db", "filename": "files/20180213_IN10784_315ef5804323ca9c8848bd2d5c4695419d2273db.html", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 577769, "date": "2018-01-23", "retrieved": "2018-01-26T14:22:33.028804", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the U.S. Department of the Treasury, particularly in the context of major floods, and discusses the current financial situation of the NFIP as it pays claims from Hurricanes Harvey, Irma, and Maria. \nNFIP Funding\nFunding for the NFIP is primarily maintained in an authorized account called the National Flood Insurance Fund (NFIF). Generally, the NFIP has been funded from receipts from the premiums of flood insurance policies, including fees and surcharges; direct annual appropriations for specific costs of the NFIP (currently only flood mapping); and borrowing from the Treasury when the balance of the NFIF has been insufficient to pay the NFIP\u2019s obligations (e.g., insurance claims). Key provisions of the NFIP were extended from September 30, 2017, through December 8, 2017 (Section 130 of P.L. 115-56), extended again until December 22, 2017 (P.L. 115-90), and extended a third time until January 19, 2018 (P.L. 115-96). The NFIP lapsed between January 20 and January 22, 2018, and received another short-term reauthorization until February 8, 2018 (H.R. 195). However, these extensions did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP.\nNFIP Borrowing Authority\nThe 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\u2019s history, the program has generally been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims, and then repaying the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2017. Comparable figures are not available before 1980. When the NFIP was first established, the borrowing limit was $250 million. In 1973, the borrowing limit was increased to $500 million, or $1 billion with the approval of the President. The borrowing limit was increased to $1.5 billion in 1996; however, borrowing at that level was not required prior to 2005. The largest debt was $917 million in 1997, which was steadily reduced to zero by the end of FY2003. However, the NFIP was forced to increase 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. The Biggert-Waters Flood Insurance Reform Act of 2012 established a reserve fund to cover future expenses, especially those from catastrophic disasters. Since the 2005 hurricane season, the NFIP has made six principal repayments totaling $2.82 billion and has paid $3.83 billion in interest. The program is currently paying nearly $400 million annually in interest. In January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 (the Louisiana floods and Hurricane Matthew) and anticipated programmatic activities, including debt repayments. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n265,000,000\n0\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2017\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n13,525,000,000\n16,000,000,000a\n20,525,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nThe $16 billion of debt was cancelled rather than repaid (P.L. 115-72, Title III, \u00a7308).\nHurricanes Harvey, Irma, and Maria\nOn September 22, 2017, FEMA borrowed the remaining $5.825 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. On October 26, 2017, $16 billion of NFIP debt was cancelled to make it possible for the program to pay claims for Hurricanes Harvey, Irma, and Maria. This represents the first time that NFIP debt has been cancelled, although Congress appropriated funds between 1980 and 1985 to repay NFIP debt. FEMA borrowed another $6.1 billion on November 9, 2017, to fund estimated 2017 losses, including those incurred by Hurricanes Harvey, Irma, and Maria and anticipated programmatic activities, bringing the debt up to $20.525 billion. The NFIP currently has $9.9 billion of remaining borrowing authority. \nThe funds currently available to the NFIP do not include additional resources that a recent reinsurance contract will provide. FEMA paid a $150 million premium to purchase $1.042 billion of reinsurance. The contract is structured to pay 26% of the losses between $4 billion and $8 billion arising from a single flooding event. Although it is too early to estimate the total costs associated with Hurricane Harvey or Hurricane Irma, FEMA has already paid over $7.3 billion in claims for Hurricane Harvey, triggering the 2017 reinsurance.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/IN10784", "sha1": "a849640739c20cd0612959327625dbd131923bd7", "filename": "files/20180123_IN10784_a849640739c20cd0612959327625dbd131923bd7.html", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 577343, "date": "2018-01-03", "retrieved": "2018-01-05T14:21:21.648485", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the U.S. Department of the Treasury, particularly in the context of major floods, and discusses the current financial situation of the NFIP as it pays claims from Hurricanes Harvey, Irma, and Maria. \nNFIP Funding\nFunding for the NFIP is primarily maintained in an authorized account called the National Flood Insurance Fund (NFIF). Generally, the NFIP has been funded from receipts from the premiums of flood insurance policies, including fees and surcharges; direct annual appropriations for specific costs of the NFIP (currently only flood mapping); and borrowing from the Treasury when the balance of the NFIF has been insufficient to pay the NFIP\u2019s obligations (e.g., insurance claims). Key provisions of the NFIP were extended from September 30, 2017, through December 8, 2017 (Section 130 of P.L. 115-56), extended again until December 22, 2017 (P.L. 115-90), and extended a third time until January 19, 2018 (P.L. 115-96). However, these extensions did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP.\nNFIP Borrowing Authority\nThe 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\u2019s history, the program has generally been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims, and then repaying the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2017. Comparable figures are not available before 1980. When the NFIP was first established, the borrowing limit was $250 million. In 1973, the borrowing limit was increased to $500 million, or $1 billion with the approval of the President. The borrowing limit was increased to $1.5 billion in 1996; however, borrowing at that level was not required prior to 2005. The largest debt was $917 million in 1997, which was steadily reduced to zero by the end of FY2003. However, the NFIP was forced to increase 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. The Biggert-Waters Flood Insurance Reform Act of 2012 established a reserve fund to cover future expenses, especially those from catastrophic disasters. Since the 2005 hurricane season, the NFIP has made six principal repayments totaling $2.82 billion and has paid $3.83 billion in interest. The program is currently paying nearly $400 million annually in interest. In January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 (the Louisiana floods and Hurricane Matthew) and anticipated programmatic activities, including debt repayments. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n265,000,000\n0\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2017\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n13,525,000,000\n16,000,000,000a\n20,525,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nThe $16 billion of debt was cancelled rather than repaid (P.L. 115-72, Title III, \u00a7308).\nHurricanes Harvey, Irma, and Maria\nOn September 22, 2017, FEMA borrowed the remaining $5.825 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. On October 26, 2017, $16 billion of NFIP debt was cancelled to make it possible for the program to pay claims for Hurricanes Harvey, Irma, and Maria. This represents the first time that NFIP debt has been cancelled, although Congress appropriated funds between 1980 and 1985 to repay NFIP debt. FEMA borrowed another $6.1 billion on November 9, 2017, to fund estimated 2017 losses, including those incurred by Hurricanes Harvey, Irma, and Maria and anticipated programmatic activities, bringing the debt up to $20.525 billion. The NFIP currently has $9.9 billion of remaining borrowing authority. \nThe funds currently available to the NFIP do not include additional resources that a recent reinsurance contract will provide. FEMA paid a $150 million premium to purchase $1.042 billion of reinsurance. The contract is structured to pay 26% of the losses between $4 billion and $8 billion arising from a single flooding event. Although it is too early to estimate the total costs associated with Hurricane Harvey or Hurricane Irma, FEMA has already paid over $7.3 billion in claims for Hurricane Harvey, triggering the 2017 reinsurance.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/IN10784", "sha1": "0446215f075c630d2a9978f469f55154e464c66f", "filename": "files/20180103_IN10784_0446215f075c630d2a9978f469f55154e464c66f.html", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 575857, "date": "2017-11-27", "retrieved": "2017-11-28T14:30:33.377844", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the U.S. Department of the Treasury, particularly in the context of major floods, and discusses the current financial situation of the NFIP as it pays claims from Hurricanes Harvey, Irma, and Maria. \nNFIP Funding\nFunding for the NFIP is primarily maintained in an authorized account called the National Flood Insurance Fund (NFIF). Generally, the NFIP has been funded from receipts from the premiums of flood insurance policies, including fees and surcharges; direct annual appropriations for specific costs of the NFIP (currently only flood mapping); and borrowing from the Treasury when the balance of the NFIF has been insufficient to pay the NFIP\u2019s obligations (e.g., insurance claims). Key provisions of the NFIP were extended from September 30, 2017, through December 8, 2017 (Section 130 of P.L. 115-56). However, this extension did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP.\nNFIP Borrowing Authority\nThe 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\u2019s history, the program has generally been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims, and then repaying the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2017. Comparable figures are not available before 1980. When the NFIP was first established, the borrowing limit was $250 million. In 1973, the borrowing limit was increased to $500 million, or $1 billion with the approval of the President. The borrowing limit was increased to $1.5 billion in 1996; however, borrowing at that level was not required prior to 2005. The largest debt was $917 million in 1997, which was steadily reduced to zero by the end of FY2003. However, the NFIP was forced to increase 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. The Biggert-Waters Flood Insurance Reform Act of 2012 established a reserve fund to cover future expenses, especially those from catastrophic disasters. Since the 2005 hurricane season, the NFIP has made six principal repayments totaling $2.82 billion and has paid $3.83 billion in interest. The program is currently paying nearly $400 million annually in interest. In January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 (the Louisiana floods and Hurricane Matthew) and anticipated programmatic activities, including debt repayments. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n265,000,000\n0\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2017\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n13,525,000,000\n16,000,000,000a\n20,425,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, November 20, 2017. \nThe $16 billion of debt was cancelled rather than repaid (P.L. 115-72, Title III, \u00a7308).\nHurricanes Harvey, Irma, and Maria\nOn September 22, 2017, FEMA borrowed the remaining $5.825 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. On October 26, 2017, $16 billion of NFIP debt was cancelled to make it possible for the program to pay claims for Hurricanes Harvey, Irma, and Maria. This represents the first time that NFIP debt has been cancelled, although Congress appropriated funds between 1980 and 1985 to repay NFIP debt. FEMA borrowed another $6.1 billion on November 9, 2017, to fund estimated 2017 losses, including those incurred by Hurricanes Harvey, Irma, and Maria and anticipated programmatic activities, bringing the debt up to $20.525 billion. The NFIP currently has $9.9 billion of remaining borrowing authority. \nThe funds currently available to the NFIP do not include additional resources that a recent reinsurance contract will provide. FEMA paid a $150 million premium to purchase $1.042 billion of reinsurance. The contract is structured to pay 26% of the losses between $4 billion and $8 billion arising from a single flooding event. Although it is too early to estimate the total costs associated with Hurricane Harvey or Hurricane Irma, FEMA has determined that losses are high enough to begin accessing reinsurance funds.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/IN10784", "sha1": "cdfecedf900ec280f677104b22aea68cb3b8d08e", "filename": "files/20171127_IN10784_cdfecedf900ec280f677104b22aea68cb3b8d08e.html", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 574145, "date": "2017-09-22", "retrieved": "2017-10-17T14:23:14.664526", "title": "National Flood Insurance Program Borrowing Authority", "summary": "This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans from the U.S. Department of the Treasury, particularly in the context of major floods, and discusses the current financial situation of the NFIP as it begins to pay claims from Hurricanes Harvey, Irma, and Maria. On September 22, 2017, FEMA borrowed $5.285 billion from the Treasury, reaching the NFIP\u2019s authorized borrowing limit of $30.425 billion. \nNFIP Funding\nFunding for the NFIP is primarily maintained in an authorized account called the National Flood Insurance Fund (NFIF). Generally, the NFIP has been funded from receipts from the premiums of flood insurance policies, including fees and surcharges; direct annual appropriations for specific costs of the NFIP (currently only flood mapping); and borrowing from the Treasury when the balance of the NFIF has been insufficient to pay the NFIP\u2019s obligations (e.g. insurance claims). \nNFIP Borrowing Authority\nThe 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\u2019s history, the program has generally been able to cover its costs, borrowing relatively small amounts from the Treasury to pay claims, and then repaying the loans with interest. Table 1 and Table 2 show NFIP borrowing, repayments, and debt from 1981 to 2017. Comparable figures are not available before 1980. When the NFIP was first established, the borrowing limit was $250 million. In 1973, the borrowing limit was increased to $500 million, or $1 billion with the approval of the President. The borrowing limit was increased to $1.5 billion in 1996; however, borrowing at that level was not required prior to 2005. The largest debt was $917 million in 1997, which was steadily reduced to zero by the end of FY2003. However, the NFIP was forced to increase 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 2006. In July 2010, the borrowing limit was decreased to $20.725 billion. In 2013, following Hurricane Sandy, Congress increased the borrowing limit to the current $30.425 billion. The Biggert-Waters Flood Insurance Reform Act of 2012 established a reserve fund to cover future expenses, especially those from catastrophic disasters. Since the 2005 hurricane season, the NFIP has made six principal repayments totaling $2.8 billion and has paid $3.4 billion in interest. The program is currently paying nearly $400 million annually in interest. In January 2017, the NFIP borrowed $1.6 billion due to losses in 2016 (the Louisiana floods and Hurricane Matthew) and anticipated programmatic activities, including debt repayments. \nTable 1. NFIP Borrowing FY1980 to FY1998\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1980\n917,406,008\n0\n917,406,008\n\n1981\n164,614,526\n624,970,099\n457,050,435\n\n1982\n13,915,000\n470,965,435\n0\n\n1983\n50,000,000\n0\n50,000,000\n\n1984\n200,000,000\n36,879,123\n213,120,877\n\n1985\n0\n213,120,877\n0\n\n1986\n0\n0\n0\n\n1987\n0\n0\n0\n\n1988\n0\n0\n0\n\n1989\n0\n0\n0\n\n1990\n0\n0\n0\n\n1991\n0\n0\n0\n\n1992\n0\n0\n0\n\n1993\n0\n0\n0\n\n1994\n100,000,000\n100,000,000\n0\n\n1995\n265,000,000\n265,000,000\n0\n\n1996\n423,600,000\n62,000,000\n626,600,000\n\n1997\n530,000,000\n239,600,000\n917,000,000\n\n1998\n0\n395,000,000\n522,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, September 18, 2017. \nTable 2. NFIP Borrowing FY1999 to FY2017\n(Nominal dollars)\nFiscal Year\nAmount Borrowed\nAmount Repaid\nCumulative Debt\n\n1999\n400,000,000\n381,000,000\n541,000,000\n\n2000\n345,000,000\n541,000,000\n600,000,000\n\n2001\n600,000,000\n345,000,000\n600,000,000\n\n2002\n50,000,000\n640,000,000\n10,000,000\n\n2003\n0\n10,000,000\n0\n\n2004\n0\n0\n0\n\n2005\n300,000,000\n75,000,000\n225,000,000\n\n2006\n16,600,000,000\n0\n16,885,000,000\n\n2007\n650,000,000\n0\n17,735,000,000\n\n2008\n50,000,000\n225,000,000\n17,360,000,000\n\n2009\n1,987,988,421\n347,988,421\n19,000,000,000\n\n2010\n0\n500,000,000\n18,500,000,000\n\n2011\n0\n750,000,000\n17,750,000,000\n\n2012\n0\n0\n17,750,000,000\n\n2013\n6,250,000,000\n0\n24,000,000,000\n\n2014\n0\n1,000,000,000\n23,000,000,000\n\n2015\n0\n0\n23,000,000,000\n\n2016\n0\n0\n23,000,000,000\n\n2017\n7,425,000,000\n0\n30,425,000,000\n\nSource: CRS analysis of data provided by FEMA Congressional Affairs, September 22, 2017. Figures for 2017 do not include any borrowing which may be needed to cover claims for Hurricane Maria or additional claims for Hurricanes Harvey and Irma. \nHurricanes Harvey, Irma, and Maria\nOn September 22, 2015, FEMA borrowed the remaining $5.825 billion from the Treasury, so the NFIP now owes $30.425 billion to the U.S. Treasury. The NFIP has $6.796 billion in available funds to pay claims ($6.090 billion in the NFIF and $911 million in the reserve fund, minus $205 million for the September debt interest payment). As of September 22, $1.021 billion has been approved in response to Hurricane Harvey and $64 million has been approved in response to Hurricane Irma. FEMA will also have to pay significant claims for Hurricane Maria. \nThe funds currently available to the NFIP do not include additional resources that a recent reinsurance contract will provide. FEMA paid a $150 million premium for the reinsurance contract, which is structured to pay 26% of the losses between $4 billion and $8 billion arising from a single flooding event. FEMA estimates that flood claims for Hurricane Harvey will be between $9 billion and $12 billion, and therefore triggering the full $1.042 billion reinsurance payment. Once FEMA has used the remaining funds and the reinsurance payment, all it would have available to pay claims would be the income from NFIP policyholder premiums, fees, and surcharges. \nKey provisions of the NFIP were extended from September 30, 2017, through December 8, 2017 (Section 130 of P.L. 115-56). However, this extension did not increase the NFIP\u2019s borrowing limit or provide additional funds to the NFIP. Given the severity of Hurricanes Harvey, Irma, and Maria, the remaining funds may not be sufficient to pay all claims. In this case Congress may consider increasing the borrowing limit, as was done most recently following Hurricane Sandy.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/IN10784", "sha1": "0a209a9bd343087b32285255c25510de2b4d87e1", "filename": "files/20170922_IN10784_0a209a9bd343087b32285255c25510de2b4d87e1.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/IN10784", "sha1": "625ea01fd7f1b94b34ae9f42f876c1d924f8ae21", "filename": "files/20170922_IN10784_625ea01fd7f1b94b34ae9f42f876c1d924f8ae21.pdf", "images": {} } ], "topics": [] } ], "topics": [] }