Federal Flood Insurance Broke? No Problem, Extend Its Coverage

I liked this story from the Bradenton (Fla.) Herald about Congressional earmarks that extended federal flood subsidies for a couple areas at high risk from hurricanes, including an island of the Georgia coast ready to be redeveloped.  This story is written in a brutally frank style:

For all it didn’t accomplish [in 2006], Congress passed two bills carving out exceptions to a law passed years ago to phase out federal spending that might encourage development in environmentally sensitive and disaster-prone areas.

And the reporter went beyond the Caspar Milquetoast style prevalent in many stories about flood insurance, including dredging up this great quote: 

"You only have to look at 300 miles of Katrina and Rita wasteland to see that bankrolling federal flood insurance in high-risk areas is just asking the American taxpayer to flush money down the toilet," said Oliver Houck, director of the environmental law program at Tulane University in New Orleans. "If people want to build out there, that’s one thing. But to build out there with federal support is insane."

Sidenote: here is more on the history of the Caspar Milquetoast character, described by the cartoonist as "the man who speaks softly and gets hit with a big stick."   

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One Response to Federal Flood Insurance Broke? No Problem, Extend Its Coverage

  1. Hie

    New Orleans considers the US government an insurer and expects them to pay.