WESLACO – A government watchdog group said a flood insurance program is losing billions and needs to be overhauled.

The National Flood Insurance Program, a FEMA-run program, was created to reduce the costs of federal assistance after flooding and offer affordable insurance to property owners.

Alicia Puente Cackley with the Government Accountability Office said the program has competing goals.

“The goals of affordability of premiums, so people will actually purchase flood insurance and be protected through that. But also the goal of fiscal responsibility, and not having the program cost the taxpayer too much money,” she said.

Cackley said the program owes the U.S. Department of the Treasury $24.6 billion.

“It can’t really repay it. In order to pay that off and also collect enough premiums to pay for future potential costs, it’s just no possible to do. And it would certainly affect the affordability of those premiums,” she said. “That’s why this report is suggesting that Congress consider eliminating the debt that’s currently owed to the Treasury.”

The GAO said the program’s debt was caused by not charging enough money for insurance premiums.

“In order to increase premiums and keep things affordable, the premiums need to be high enough to cover the true risk of the program,” she said.

Cackley said Congress could make money available to help people who can’t afford to buy insurance on their own.

“I think the main takeaway is that a piecemeal approach to flood insurance reform is just not going to work,” she said.

She said the program should be overhauled in order to stay running.

Link: Report - Comprehensive Reform Could Improve Solvency and Enhance Resilience