President’s Budget Plan to Include Cuts to Flood Insurance Program

March 2, 2001

While the merits of President George Bush’s proposed budget are still being weighed, one of the items getting attention in the proposal is a cut in the National Flood Insurance Program. The new budget would end subsidized flood insurance premiums for vacation homes and for properties built and rebuilt in flood plains.

Bush’s cuts are something that have been discussed well before he was voted into office. Former Federal Emergency Management Agency Director James Lee Witt stressed that something must be done to encourage homeowners to move out of repeatedly flooded areas or elevating such structures.

In early February, Witt requested his budget include up to $70 million to remove or elevate buildings that suffer repetitive flood losses and a supplemental appropriation of $77.4 million for home buyouts and relocation assistance for Hurricane Floyd flood victims.

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