The Federal Emergency Management Agency is making sweeping reforms to the nation’s flood insurance program in the wake of a series of critical reports on NPR and the PBS series Frontline. But lawmakers say this isn’t enough when private insurance companies are profiting millions of dollars from a program that is already $23 billion in debt.
Sen. Bob Menendez, D-N.J., and other lawmakers say they are considering removing private companies from the National Flood Insurance Program.
“This is a federal program at the end of the day,” says Sen. Bob Menendez, D-N.J., whose constituents were heavily affected by Superstorm Sandy. “It needs to fundamentally transform. And if it cannot do so on its own, then we have to consider legislatively whether we scrap the entire model.”