The Federal Emergency Management Agency (FEMA) recently borrowed $2 billion from the U.S. Treasury to pay eligible National Flood Insurance Program (NFIP) policyholder claims.
“The widespread, devastating flooding following hurricanes Helene and Milton reemphasizes the financial effects flooding can have not just to survivors but also the National Flood Insurance Program,” Dr. Elizabeth Asche, NFIP senior executive, said.
In most years, NFIP premiums are usually sufficient to pay claims. In 2024, widespread damage resulted in tens of thousands of flood insurance claims that depleted the NFIP’s funds. As of Thursday, NFIP has received more than 21,100 flood insurance claims totaling more than $740 million from Hurricane Milton damage and more than 57,400 flood insurance claims totaling more than $4.5 billion from Hurricane Helene.
“We are strategically utilizing short-term borrowings in 60-day increments, demonstrating our careful and responsible management of the borrowing authority. Despite these challenges, the NFIP remains unwavering in its commitment to fully pay every claim and ensure policyholders receive the compensation they are owed for eligible flood-related losses.”
NFIP’s estimated total losses paid following Hurricane Milton are between $1.2 billion and $2.9 billion, and between $6.4 billion and $7.4 billion for Hurricane Helene.
FEMA borrowed $20.5 billion following hurricanes Katrina, Sandy and Harvey.