ShareBloomberg News
The announcement last week from Homeland Security Secretary Kristi Noem that she plans to "eliminate" the Federal Emergency Management Agency (FEMA) has cast a pall over the US government's disaster response unit.
While most of the focus has been on what it would mean for disaster recovery if the agency is wound down, there's another big issue at stake: FEMA's foundational role in managing the National Flood Insurance Program (NFIP). Any changes to the program or how it's run can potentially disrupt the lives of millions of homeowners living in flood-prone areas.
The National Association of REALTORS® said a lapse in NFIP would likely prevent 40,000 property sales per month in severe flood zones, where buyers are required to have flood insurance to get a mortgage.
Historically, NFIP has enjoyed strong bipartisan support when it periodically comes time to be reauthorized — after all, there are flood zones in both blue and red states — there would likely be political blowback if the program is shuttered.