Removing Barriers Blog

Credit Unions and Consumers Need a Long-term Solution to National Flood Insurance Program
Posted May 07, 2019 by CUNA Advocacy

CUNA wrote to Chairman McGovern and Ranking Member Cole prior to the Committee’s hearing on H.R. 2157, the Supplemental Appropriations Act of 2019. The Chairwoman of the House Appropriations Committee, Representative Nita Lowey (D-NY), is expected to offer a “Manager’s Amendment” to the bill to extend the expiration of the authority of the National Flood Insurance Program from May 31 to September 30, 2019. CUNA urges the Committee to accept this amendment.

Credit unions play an increasingly important role in the housing finance market and, as a result, have a vested interest in the ongoing stability of the National Flood Insurance Program (NFIP).  Many credit union members, throughout the United States, live in communities designated as Special Flood Hazard Areas subject to mandatory flood insurance requirements and many of those same members rely upon the coverage offered under the program to insure against the risk of a natural disaster occurring.

For far too long, the National Flood Insurance Program has been the source of uncertainty and instability in the housing sector due to repeated lapses in the Program’s reauthorization and short-term extensions. Accordingly, CUNA has consistently encouraged Congress to work on a long-term solution to enhance the affordability and ultimate sustainability of the National Flood Insurance Program in order to restore certainty to the market. Absent any such long-term solution, CUNA supports the Lowey amendment to extend the NFIP’s authority and prevent its lapse on May 31, 2019.