The National Flood Insurance Program (NFIP) is more than $20 billion in debt as of 2022. This is partly due to the increase in the number of flooding events in the US in recent years. But another factor is the need for changes in how flood insurance premiums are calculated for homeowners in the program.
Past attempts to fix the issue in Congress were delayed or scrapped due to outcry from homeowners facing sharp increases in their insurance premiums after government subsidies were eliminated. In 2012, legislation opened the way for more fundamental changes.
