The National Flood Insurance Program is already $23 billion in debt after servicing Hurricanes Sandy and Katrina, but Harvey claims are about to grow its debt pile by billions of dollars, Fox Business reported.
The NFIP, which is overseen by FEMA, is the only source of flood insurance for most Americans. Debt it has borrowed from the Treasury is due next month, at the same time the program faces re-authorization from Congress.
Some legislators have argued that it's impossible for NFIP to pay a debt that large and have called for a major restructuring to avoid NFIP taking on such a huge accumulation of debt every time there's a natural disaster. Its been on the Government Accountability Office's "High-Risk List" since 2006.
Urgency in Texas and Louisiana amid Harvey destruction could push Congress toward a rapid reauthorization before NFIP's September 30 expiration. Other options include a temporary reauthorization while the program works to develop longer-term reforms.
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