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For Immediate Release
December 27, 2018
ABA Media Contact: Blair Bernstein
(202) 663-5468
Follow us on Twitter: @ABABankers

ABA Statement on FEMA Decision to Halt National Flood Insurance Program

By Rob Nichols, ABA president and CEO

​“On December 26, the Federal Emergency Management Agency announced its intention to halt regular operations for the National Flood Insurance Program. This decision comes even as Congress passed and the President signed legislation last week that was specifically intended to keep the program operating during the government shutdown.
 
“FEMA’s unexpected decision will complicate and delay loan closings for borrowers who are required to carry flood insurance and seek NFIP coverage for as long as the government shutdown continues. This result is in direct conflict with what Congress and the President intended when legislation was passed and signed into law last week to extend the NFIP’s authorization for six months. FEMA’s failure to inform Congress and the public earlier that such action would be taken despite the passage of the extension is distressing. We hope that FEMA will reconsider this unfortunate action immediately.
 
“We commend the leadership shown by Congress to ensure continued access to flood insurance for Americans in flood-prone areas. We will continue to work with Congress and the administration towards long-term reforms that increase the availability and affordability of coverage for all at-risk properties.”
 
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The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, midsize, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend nearly $10 trillion in loans.