(Bloomberg) -- President Donald Trump proposed endingfederal flood insurance for new homes in areas most at risk offlooding, a change that could curtail new construction in vastparts of Florida, Louisiana and along the EasternSeaboard.
Trump’s plan would radically overhaul the program created in1968 to help protect homeowners who live along coasts or nearrivers. The idea, sent by the White House to Congress, created anunlikely set of responses: Home builders warned it could stifle theeconomy while climate activists, who have battled Trump, called theidea smart.
Letter to Congress
On Wednesday Mick Mulvaney, the director of White House Officeof Management and Budget, sent a letter to Congress calling forchanges to the taxpayer-subsidized National Flood Insurance Program, which is $25 billionin debt thanks to ever-worsening storms. Mulvaney’s proposalsincluded preventing homes built in flood plains after 2020 fromobtaining insurance under the program. Those homes could insteadseek private coverage, which is often prohibitivelyexpensive — if it’s available at all.
Home builders oppose idea
The National Association of Home Builders said it strongly opposedthe idea, arguing it would "harm local communities and impaireconomic growth."
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