The financial viability of the federal flood insurance program is threatened by insufficient subsidized rates, said a top official of the U.S. Government Accountability Office last week.
William Jenkins, GAO director of homeland security and justice issues, told the Senate Banking Committee that the National Flood Insurance Program does not collect sufficient premium to build reserves necessary for meeting long-term flood loss claims.
He said that while FEMA has kept the program on a sound financial footing so far, the catastrophic flooding of 2004 required the program to borrow $300 million from the Treasury to meet claims.
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