Mr. Chairman, I offer an amendment. Mr. Chairman, today I am offering an amendment that would end TV and radio ads that I believe to be a total waste of taxpayers' dollars. Over the past 2 years FEMA has actually spent over half a million…
Mr. Chairman, I offer an amendment.
Mr. Chairman, today I am offering an amendment that would end TV and radio ads that I believe to be a total waste of taxpayers' dollars. Over the past 2 years FEMA has actually spent over half a million dollars on the production of what they called ``Home Personified flood insurance commercials.'' These slick commercials sort of depict actors with roofs hovering over their heads talking about the need to
obtain flood insurance, and about the fact that one in four homes are in a high-risk flood zone, and they pitch to contact FEMA for a free brochure about the program.
These commercials between April of 2010 and April of 2011 cost over $7 million in airtime to broadcast all across the 50 States, and they are slated to be aired for an additional year at least. Seven million dollars spent on promoting the National Flood Insurance Program, which is a federally mandated flood program, which has been mentioned all across the day here, is already almost $18 billion in debt. I would say, why not spend that $7 million to pay back the American taxpayers? Or better yet, to begin paying off the program's $18 billion in debt?
Mr. Chairman, last year in the election in the fall, the American people sent a very clear message to Washington. And I don't think the message to Congress here was urging us to spend millions of dollars of taxpayers' money on TV commercials asking them to put money into a failing, bloated, and completely unnecessary government program. No, they were demanding that we get a grip on government spending, on out- of-control government spending, and they were asking us to end programs where the government is trying to fill a role best done by the private sector.
Shortly, Mr. Chairman, all of us in this House, in the Congress, in both Chambers, are going to be asked to raise the national debt limit because we have not been able to get our fiscal house in order. And this week, here we are being asked to renew a Federal program that is over $17 billion in debt currently, all of which falls on the backs of the American taxpayers, and we need to raise the debt ceiling of the flood insurance program, as well, to almost $25 billion. Who cares? I guess it's just taxpayers' money.
If we want to stop adding to our national debt, we should not continue the Federal flood insurance program--and I'm going to be offering an amendment to that in a moment--nor should we continue to spend millions each year on TV commercials for a program that constituents in many, many States, most of the States across the Nation, are wondering about, at a minimum, and many of them are outraged. I certainly hear from my constituents back in Michigan who are looking for some relief. These hard-pressed taxpayers from my State are asking for less spending, for less government, for lower taxes and less government intrusion into their lives. They're certainly not asking us for wasteful government programs to be shoved down their throats on television with television ads.
My amendment today, Mr. Chairman, to end unnecessary spending on TV commercials for the National Flood Insurance Program will be a downpayment on the relief that we owe to the American taxpayers who are concerned about these commercials that seem to be on repeat all across the airwaves in all of the States across our Nation.
Mr. Chairman, I would ask that my colleagues support this amendment today and vote in favor of saving money, taxpayers' money, for the American taxpayers.
I reserve the balance of my time.
Mr. Chairman, I would simply observe that, for the most part, the reason that folks, property owners, get national flood insurance is because the Federal Government holds a gun to their heads and says that you cannot get a federally backed mortgage unless you buy Federal national flood insurance through the National Flood Insurance Program. So I don't think we have to spend millions and millions of dollars to convince them to do something that, in my mind, I question whether it is even constitutional that we are forcing people to do this kind of a thing; but I certainly don't think we need to spend millions of dollars to notify them of something that we are mandating for them.
Certainly if you live in a flood-prone area, you probably know it. And with everything going on in the Nation, I just can't believe we're wasting money like this. And I would certainly urge my colleagues to support this amendment.
I yield back the balance of my time.
Mr. Chairman, I demand a recorded vote.
Mr. Chairman, I have an amendment at the desk made in order under the rule.
I yield myself such time as I may consume.
I would begin by asking a very fundamental question: Why in the world is the Federal Government in the flood insurance business? Really, I do not understand it.
I don't think anyone should be surprised to learn that the Federal Government is not a very good insurance agent, that they run a terrible insurance program, as evidenced by the $18 billion in debt that the NFIP, the National Flood Insurance Program, has racked up over the years and will probably never repay. I don't think they'll ever repay it. If you don't believe me, you can consider the testimony that the administrator of FEMA made before the Financial Services Committee. In congressional testimony, he said the program will likely always be in debt, massive debt.
Congress set up the NFIP to ostensibly be an insurance company, but it is not held to the same standards as private insurance companies. Instead of holding cash reserves, the NFIP has a bottomless pit of money that it shamelessly taps into. That money pit is also known as the U.S. Treasury, or the American taxpayers. If the NFIP were a private insurance company, it would have gone bankrupt years ago, or it would have been in need of a Federal bailout. In other words, when this government-authorized Ponzi scheme runs out of money, it simply gets more by dipping into the pockets of taxpayers. Mr. Chairman, I would say that this is a program that would make Bernie Madoff blush.
The American people are fed up with bailouts, and this bill is just that: another bailout for another broken program. If we want to stop adding to our national debt, we should not continue the Federal flood insurance program.
My home State of Michigan is just one of a majority of States that is actually disadvantaged by this Ponzi scheme. The State House of Representatives has recently passed a resolution condemning the NFIP as fundamentally flawed and unfair, and I would expect the State Senate to follow suit shortly. So there is an entire State. I don't think that's radical.
My amendment would actually end the program at the end of this year and allow States to work together to form a regional coalition to shape insurance policies that meet the needs of their particular State. There is no way that a one-size-fits-all insurance program that dramatically subsidizes rates in some of the most flood-prone areas of our Nation while at the same time forcing those in less flood-prone areas to pay much higher rates can be sustained. States like mine will simply become fed up and opt out, which is what's going to happen, so that they can better protect their citizens. Then, of course, it would force this program even deeper into debt. It is time to end this program now.
My amendment would also, and perhaps more importantly, allow the private market to get into the flood insurance business without the Federal Government's unfair competition of politically based premiums, which would allow premiums to be set based on actual risk.
If you want to get a handle on out-of-control Federal spending and start eliminating government programs that do nothing except enforce bad policy and recklessly spend the taxpayers' money, I would ask my colleagues to support my amendment.
A Resolution To Memorialize the Congress of the United States To Make
Significant Reforms to the National Flood Insurance Program
Whereas, Under the National Flood Insurance Program, most
property owners must purchase flood insurance if their
property is located within a mapped floodplain; and
Whereas, The Federal Emergency Management Agency (FEMA) has
recently revised existing floodplain maps in Michigan that,
in many cases, have increased the amount of land within the
floodplain without adequate explanation of perceived
additional flood risk. Flood insurance for buildings within
redrawn areas is a significant added expense. These revisions
amount to a penalty that will be felt far into the future,
especially as the market value of impacted properties suffers
needlessly; and
Whereas, The revised maps exacerbate disparities between
the premiums paid by Michigan residents relative to claims
received. Michigan residents have paid nearly five times as
much in flood insurance premiums than they have received back
in claims over the last 30 years. The remaining funds from
these premiums goes to subsidize flood insurance claims in
higher risk areas of the country; and
Whereas, The National Flood Insurance Program is operated
without transparency to the public in rate-setting methods.
Rebuilding within a floodplain has continued in higher risk
areas of the country where multiple recent flood events have
occurred, contributing to the $20 billion in debt of the
National Flood Insurance Program. Rebuilding in very high
risk areas would be avoided if flood insurance was set at
actuarially sound rates; and
Whereas, The National Flood Insurance Program is
fundamentally flawed and unfair. Year after year, the program
takes money from property owners in most states and uses that
money to rebuild in only a few states. Congresswoman Candice
Miller has introduced legislation (H.R. 435) to eliminate the
National Flood Insurance Program in 2013 and to authorize
states to work together to provide flood insurance as they
deem appropriate; and
Whereas, Congresswoman Judy Biggert has introduced
legislation, the Flood Insurance Reform Act of 2011 (H.R.
1309), to begin the process of modernizing and reforming the
National Flood Insurance Program; now, therefore, be it
Resolved by the House of Representatives, That we
memorialize the Congress of the United States to make
significant reforms to the National Flood Insurance Program;
and be it further
Resolved, That copies of this resolution be transmitted to
the President of the United States Senate, the Speaker of the
United States House of Representatives, and the members of
the Michigan congressional delegation.
Adopted by the House of Representatives, June 21, 2011.
I reserve the balance of my time.
Mr. Chairman, I yield 1 minute to the gentleman from New York (Mr. Higgins).
Mr. Chairman, I would simply reiterate that I don't think this is something that the Federal Government should be involved in. If you are truly a friend of the taxpayers, and believe me, I appreciate the bipartisanship and the hard work about reforming this program. I understand the need to reform programs, but I also understand the need to get a handle on the Federal debt and deficit; and one way to do that is to eliminate unnecessary programs, not just nibble around the edges, which is what I think we are doing here today.
I certainly urge my colleagues to support this amendment.
I yield back the balance of my time.
Mr. Chairman, I demand a recorded vote.