NFIP May Need Additional Borrowing Authority to Pay Sandy Claims

The National Flood Insurance Program (NFIP) will likely need to go to Congress for additional borrowing authority to pay claims from Superstorm Sandy, according to two government watchdog organizations.

“It appears likely that Sandy will exhaust the NFIP’s remaining $3 billion of statutory borrowing authority, meaning it will need to request more money from Congress to pay its claims,” R.J. Lehmann, a senior fellow at the R Street Institute (a Washington think tank), says in a statement.