Lawmakers have been clamoring for changes to The National Flood Insurance Program (NFIP) since 2005, when hurricanes Katrina and Rita devastated the Gulf Coast. The current federal flood insurance program, which essentially subsidizes flood insurance for those in high-risk areas, is deeply in debt and frequently requires taxpayer-backed bailouts. A potential bailout this year could cost more than $18 billion.
Conservatives should be aware that some lawmakers want to expand the program’s scope and add an entirely new element: federal wind insurance. Adding wind insurance would be irresponsible and create another taxpayer-backed subsidy.