|
|
Article: Flood Insurance Program Seeks More Money
- Article from:
- The Washington Post
- Article date:
- October 19, 2005
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
|
The acting head of the federal flood insurance program told
Congress yesterday that his agency needs to be allowed to borrow $5
billion more just to cover claims it expects to pay by mid- to late
November.
Congress recently increased the National Flood Insurance Program's
borrowing authority by $2 billion -- to $3.5 billion -- but
acting director David I. Maurstad said the agency expects claims from
hurricanes Katrina and Rita to top $22 billion. That is more than the
program has paid out in its entire history, which stretches back to
1968.
In contrast to past borrowings, Maurstad said after a hearing by
the Senate Banking Committee, the insurance program has no hope of
repaying debt of ...