Jeb Hensarling: “I would like to insert the following letter into the Record of the debate on S. 2275, National Flood Insurance Program…”

“I would like to insert the following letter into the Record of the debate on S. 2275, National Flood Insurance Program Enhanced Borrowing Authority. Washington, DC, February 14, 2006. Hon. Dennis Hastert, Speaker of the House, The Capitol, Washington, DC. Hon. John Boehner, Majority Leader, The Capitol, Washington, DC. Dear Speaker Hastert and Majority Leader Boehner: As you know, the President's Fiscal Year 2007 budget requests a $5.6 billion increase in FEMA's borrowing authority because its flood insurance program, the National Flood Insurance Program (NFIP), is unable to cover current claims against it from the unprecedented losses resulting from Hurricane Katrina. Since 1968, the NFIP has offered property owners in coastal and river areas federally subsidized flood insurance. It currently insures approximately 4.7 million homeowners, renters and other policyholders, who pay premiums for coverage. Total insured assets are above $800 billion with some 20,100 communities participating. In heavy loss years, when losses exceed its premiums, FEMA is authorized to borrow from the U.S. Treasury up to $1.5 billion. This borrowing has historically been repaid with interest within very short time periods from NFIP premiums and fees. However, the catastrophic damage and losses resulting from the 2005 Gulf Coast hurricanes is far exceeding the available resources in the National Flood Insurance Fund.…”