President - elect Trump could reform the flood insurance industry to rectify the $ 23bn debt the National Flood Insurance Program ( NFIP ) owes taxpaying citizens , as part of his “ drain the swamp ” revamp of federal systems . Flood insurance was nationalised in 1978 , with private companies used to offer federally - backed insurance , meaning all underwriting loss was transferred to the taxpayer . The new Trump administration , in its bid to cut losses , will likely pass the Flood Insurance Market Parity and Protection Act , as well as get rid of related ill - used regulations . The NFIP ’s charter will expired in September 2017 , making it a target for reform .
President-elect Trump could reform the flood insurance industry to rectify the $23bn debt the National Flood Insurance Program (NFIP) owes taxpaying citizens, as part of his “drain the swamp” revamp of federal systems. Flood insurance was nationalised in 1978, with private insurers used to offer federally-backed insurance, meaning all underwriting loss was transferred to the taxpayer. The new Trump administration, in its bid to cut losses, will likely pass the Flood Insurance Market Parity and Modernisation Act, as well as getting rid of related ill-used regulations. The NFIP’s charter will expire in September 2017, making it a target for reform.