Some flood victims won’t be able to get federal money for rebuildling until Congress reauthorizes the National Flood Insurance Program. Some businesses are stuck because they can’t get their Small Business Administration loans until they have proof of flood insurance.
The Federal Emergency Management Agency oversees flood insurance and has been unable to write new policies since June 1st. On a visit to check in on flood recovery in Nashville (today/yesterday), FEMA administrator Craig Fugate said the delay is frustrating.
“Where you’re getting a federally backed mortgage or an SBA loan and you need flood insurance, you’re currently not able to apply. We know this is a challenge, but we also know that congress is the one that have to reauthorize the flood insurance program so we can administer it.”
Tennessee Senator Lamar Alexander co-sponsored a bill this week to extend the National Flood Insurance Program through the end of the year.
FEMA Administrator Sticks With Standard Procedure On Flood Reimbursements
Tennessee Senator Lamar Alexander has been working to boost the portion FEMA will reimburse state and local governments for last month’s flooding. The rate is usually 75% of the total costs. Alexander wants FEMA to pay 90% for expenses that range from repairing water treatment plants to buying out flood-prone homes.
Fugate suggested rules are rules.
“It’s your tax dollars. I’m not allowed to just go spend it any way I see fit. I mean, I have a match requirement.”
FEMA reimbursement does kick up to 90% if the federal help to local government exceeds $110 per person in the state. That would be more than $600 million in Tennessee. Fugate says a full assessment of the damage hasn’t been completed, but he’s unsure that threshold will be met.
FEMA does make exceptions in extreme circumstances. After the 2005 hurricane season, the agency upped the reimbursement rate to 100% in Louisiana.
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