Congress has given the green light to another increase in the Federal Emergency Management Agency's borrowing authority to pay flood claims from Hurricane Katrina, but lawmakers are growing increasingly wary of this open-ended liability.
The House last week gave its approval to legislation increasing FEMA's borrowing authority to $20.8 billion to pay Katrina-related flood insurance claims, but not before several lawmakers called for any further increases to include significant reforms to the program.
Overall, FEMA has estimated that total flood claims from the 2005 hurricane season will be about $23.5 billion, likely meaning there will be another call for increasing the agency's borrowing authority.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
