The U.S. flood insurance program will run out of money to pay claims for Hurricane Sandy and other disasters in coming days unless Congress lets it borrow more funds, the national emergency agency said on Thursday.
The warning from the Federal Emergency Management Agency (FEMA) came a day ahead of a vote by the House of Representatives on a $9 billion payment on storm-related support for the National Flood Insurance Program.
House Speaker John Boehner reversed course and scheduled Friday’s vote after fellow Republicans from states hit hard by the Oct. 29 storm slammed him for failing to bring the payment up for a vote earlier this week.
FEMA has told Congress that unless its borrowing ceiling was raised, “funds available to pay claims will be exhausted sometime around the week of Jan. 7, 2013,” the agency said in a one-sentence statement.
The FEMA program is essentially the only US flood insurance program for domestic residences, is still $18b in debt from Katrina and expects to face claims of up to $12b for Sandy.
If your home was flooded by Sandy and there’s no money in the insurance fund to help, you know who to blame. The newly elected House Speaker (or “Chief Asshole”) and his coterie.
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