Why the government's flood insurance program is underwater

The National Flood Insurance Program (NFIP) is facing significant financial challenges as the main source of flood insurance in the U.S. Although it remains the only viable option for many homeowners, the program often runs out of funds. This is due to low enrollment, outdated flood risk maps, weak development regulations, and the increasing frequency and severity of flooding driven by climate change. As a result, American taxpayers are left to shoulder the burden of flood damage costs, revealing a system that suffers from misaligned incentives and a lack of effective long-term solutions.