WASHINGTON–The National Flood Insurance Program cannot afford to continue providing coverage against floods while paying off the claims from Hurricane Katrina, according to the Congressional Budget Office.
In a letter to Sen. Judd Gregg, R-N.H., the chairman of the Senate Budget Committee, CBO Acting Director Donald Marron said the NFIP's “current financial situation is unsustainable.”
Additionally, Mr. Marron said the Federal Emergency Management Agency, which oversees the NFIP, “lacks the financial resources to cover the program's costs and the authority to make changes that might ensure that future obligations could be met.”
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