National Flood Insurance Program Further Enhanced Borrowing Authority Act of 2005
Latest Action
Became Public Law No: 109-106.
Official Summary
National Flood Insurance Program Further Enhanced Borrowing Authority Act of 2005 - Amends the National Flood Insurance Act of 1968 to increase from $3.5 billion to $18.5 billion, through FY2008, the total amount which the Director of the Federal Emergency Management Agency (FEMA) may borrow from the Secretary of the Treasury with the President's approval to carry out the flood insurance program. Designates such funds as emergency spending.
GovScope Watchdog™
AI Government Intelligence™The National Flood Insurance Program Further Enhanced Borrowing Authority Act of 2005 amends the National Flood Insurance Act of 1968 by increasing the borrowing limit for the Federal Emergency Management Agency (FEMA) from $3.5 billion to $18.5 billion through fiscal year 2008. This borrowing authority allows FEMA to obtain funds from the Secretary of the Treasury, with the President's approval, to support the National Flood Insurance Program (NFIP). The funds borrowed under this authority are designated as emergency spending.
This law significantly increases FEMA's borrowing capacity to support the National Flood Insurance Program through 2008, with the borrowed funds classified as emergency spending.
- Increases FEMA's borrowing limit from $3.5 billion to $18.5 billion for the NFIP through FY2008.
- Requires the President's approval for FEMA to borrow funds from the Treasury Secretary.
- Designates the borrowed funds as emergency spending, which can affect budgetary treatment.
['Federal Emergency Management Agency (FEMA)', 'Policyholders of the National Flood Insurance Program', 'Communities and regions prone to flooding', 'The Department of the Treasury']
['The increased borrowing authority may lead to higher federal debt exposure related to flood insurance claims.', 'The designation of funds as emergency spending could impact overall federal budget priorities and oversight.', 'Implementation depends on presidential approval, which may affect the timing and availability of funds.']
The bill was enacted during the 109th Congress and signed into law on November 21, 2005, reflecting legislative action to enhance FEMA's financial capacity to manage flood insurance claims. It builds on the National Flood Insurance Act of 1968 and responds to the need for increased funding authority for the NFIP.
Hidden impact flags detected: 2
GovScope reviewed 2 policy-risk categories. Hover for a quick definition. Click detected flags for bill-specific details.
['The increased borrowing authority may enable FEMA to respond more effectively to large-scale flood events by ensuring sufficient funds are available for insurance claims.', 'Designation of funds as emergency spending could reduce constraints on budget caps, potentially influencing federal budget allocations in other areas.', 'Higher borrowing limits might lead to increased federal debt if flood-related claims exceed premiums collected.']
Transparency considerations include monitoring the use of the expanded borrowing authority to ensure funds are used appropriately and efficiently. Oversight is important given the emergency spending designation, which may limit standard budgetary scrutiny. Tracking the impact on federal debt and flood insurance program solvency is also critical.
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