NFIP has received more than 57,400 flood insurance claims, totaling more than $4.5 billion, from Hurricane Helene alone. (Credit: Artranq/Adobe Stock)
The Federal Emergency Management Agency (FEMA) is borrowing $2 billion from the U.S. Treasury to help pay out National Flood Insurance Program (NFIP) policyholder claims.
NFIP typically relies on premiums to pay claims, but heavy damage from storms in 2024 — including hurricanes Helene and Milton — generated tens of thousands of claims for the program. The outsize losses have depleted the NFIP’s funds.
Following Hurricane Helene, NFIP has so far received more than 57,400 flood insurance claims totaling more than $4.5 billion. The program has received an additional 21,100 flood insurance claims related to Hurricane Milton so far, totaling more than $740 million.
Under the National Flood Insurance Act of 1968, FEMA has borrowing authority of $30.425 billion. The agency has borrowed $20.525 billion over the years, following hurricanes Katrina, Sandy and Harvey. Following this round of funds, FEMA’s debt will stand at $22.525 billion.
“The widespread, devastating flooding following hurricanes Helene and Milton reemphasizes the financial effects flooding can have not just to survivors but also the National Flood Insurance Program,” said Elizabeth Asche, senior executive of the NFIP, in a statement. “We are strategically utilizing short-term borrowings in 60-day increments, demonstrating our careful and responsible management of the borrowing authority. Despite these challenges, the NFIP remains unwavering in its commitment to fully pay every claim and ensure policyholders receive the compensation they are owed for eligible flood-related losses.”
The NFIP provides about $1.3 trillion in flood insurance coverage to nearly 4.7 million policyholders across the United States.
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