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Posted Thu Jan 2 2014: from NPR:
Federal Flood Insurance Program Drowning In Debt. Who Will Pay?
Millions of American property owners get flood insurance from the federal government, and a lot of them get a hefty discount. But over the past decade, the government has paid out huge amounts of money after floods, and the flood insurance program is deeply in the red. Congress tried to fix that in 2012 by passing a law to raise insurance premiums. Now that move has created such uproar among property owners that Congress is trying to make the law it passed disappear. Caught in the middle is [FEMA] ... But now FEMA has a problem. "We are $24 billion in debt," says , who directs FEMA. Fugate delivered that bit of news to Congress' House Financial Services Committee in Washington, D.C., recently, as he tried to make the case for raising insurance rates.
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