National Flood Insurance Program Reform
GAO Recommendations for Congressional Action on Flood Insurance
The National Flood Insurance Act of 1968 established the National Flood Insurance Program (NFIP) as an alternative to providing direct assistance after floods. NFIP, which provides government-guaranteed flood insurance to homeowners and businesses, was intended to reduce the Federal Government’s escalating costs for repairing flood damage after disasters. The Federal Emergency Management Agency (FEMA), which is within the Department of Homeland Security, is responsible for the oversight and management of NFIP. Since NFIP’s inception, Congress has enacted several pieces of legislation to strengthen the program. The Flood Disaster Protection Act of 1973 made flood insurance mandatory for owners of properties…
