1 00:00:01,633 --> 00:00:03,633 MILES O'BRIEN: It will take years to rebuild from Harvey, of course. 2 00:00:03,633 --> 00:00:08,100 It's too early to know the full extent of the damage, but, as we just heard, a vast 3 00:00:08,100 --> 00:00:13,100 majority, about 80 percent, of homeowners in the areas underwater in the Houston area 4 00:00:13,966 --> 00:00:15,966 do not have flood insurance. 5 00:00:15,966 --> 00:00:19,733 How to help them is sure to be a big political fight back here in Washington. 6 00:00:19,733 --> 00:00:24,400 Lisa Desjardins is here to explain that and a little bit about the flood insurance program, 7 00:00:24,400 --> 00:00:27,166 which is, shall we say, troubled, to say the least. 8 00:00:27,166 --> 00:00:28,633 LISA DESJARDINS: Right. 9 00:00:28,633 --> 00:00:30,666 Talk about sort of biblical and strange timing here. 10 00:00:30,666 --> 00:00:34,433 Let's look at a few key points about this important National Flood Insurance program. 11 00:00:34,433 --> 00:00:36,200 First of all, this program expires soon. 12 00:00:36,200 --> 00:00:38,233 It expires September 30. 13 00:00:38,233 --> 00:00:41,766 It is right now, Miles, $24 billion in debt. 14 00:00:41,766 --> 00:00:45,300 This is the largest flood insurer by a lot in this country. 15 00:00:45,300 --> 00:00:50,300 Five million Americans get their flood insurance through this federal flood insurance program. 16 00:00:52,266 --> 00:00:54,933 And now Congress has to decide how to renew it in just 30 days after this disaster. 17 00:00:54,933 --> 00:00:57,700 MILES O'BRIEN: So, what is the role for Congress right now? 18 00:00:57,700 --> 00:01:00,233 They obviously were under a deadline anyway. 19 00:01:00,233 --> 00:01:01,833 It seems more urgent now, doesn't it? 20 00:01:01,833 --> 00:01:02,833 LISA DESJARDINS: That's right. 21 00:01:02,833 --> 00:01:04,866 I think that is exactly right. 22 00:01:04,866 --> 00:01:08,833 I think that there's also a tricky issue here, in that some Republicans want to massively 23 00:01:10,866 --> 00:01:14,033 reform this program because of the debt and deficit it's in, while some other Republicans 24 00:01:14,033 --> 00:01:18,200 are more concerned about bringing down premiums for those in flood areas, and some Democrats 25 00:01:18,200 --> 00:01:19,700 with them. 26 00:01:19,700 --> 00:01:21,633 Listen to sound bites from a hearing in June of this year. 27 00:01:21,633 --> 00:01:23,733 REP. 28 00:01:23,733 --> 00:01:27,633 JEB HENSARLING (R), Texas: We know this is a program that is 455 billion underwater and 29 00:01:28,833 --> 00:01:32,266 runs an actuarial annual deficit of $1.4 billion. 30 00:01:32,266 --> 00:01:33,700 It is unsustainable. 31 00:01:33,700 --> 00:01:36,066 REP. 32 00:01:36,066 --> 00:01:39,333 MAXINE WATERS (D), California: I truly believe that this reauthorization can be bipartisan, 33 00:01:39,333 --> 00:01:44,233 but I'm concerned that if you do not heed my call to work together on the details of 34 00:01:44,233 --> 00:01:47,100 this package, it will cause irreparable harm. 35 00:01:47,100 --> 00:01:50,066 LISA DESJARDINS: Hensarling, the committee chairman, wants to limit the scope and in 36 00:01:50,066 --> 00:01:53,533 fact have more private insurers, but others say that's going to make it unaffordable. 37 00:01:53,533 --> 00:01:56,533 MILES O'BRIEN: I think we can all agree this is a broken program. 38 00:01:56,533 --> 00:02:01,533 And we hear these stories time and again about people having severe damage, building, rebuilding, 39 00:02:02,933 --> 00:02:06,300 multiple claims time and again on the same location. 40 00:02:06,300 --> 00:02:08,300 It sort of sounds like the definition of insanity. 41 00:02:08,300 --> 00:02:11,666 LISA DESJARDINS: I think that's the really important point about this story. 42 00:02:11,666 --> 00:02:15,400 Right now, we know that flood areas are increasing on our coastlines. 43 00:02:15,400 --> 00:02:18,833 Also, cities are becoming more flood-prone because of development. 44 00:02:18,833 --> 00:02:23,833 Let's look at this map, Miles, about where the most flood insurance is; 80 percent of 45 00:02:25,700 --> 00:02:28,000 the National Flood Insurance Program is in those states you see in gray. 46 00:02:28,000 --> 00:02:31,133 Those are also the states with the largest congressional delegations. 47 00:02:31,133 --> 00:02:36,033 The coastal states and, as you say, Miles, a key point, we now know that repetitive losses 48 00:02:36,033 --> 00:02:40,566 from flood damage, that's only 1 percent of those who have flood insurance, but, Miles, 49 00:02:40,566 --> 00:02:43,433 is 25 to 30 percent of the cost. 50 00:02:43,433 --> 00:02:48,133 We're seeing homes that are now seeing two, three, times of flood damage within a 10-year 51 00:02:48,133 --> 00:02:50,266 period. 52 00:02:50,266 --> 00:02:52,266 We just heard from that woman in P.J.'s piece tonight who said she's been flooded twice 53 00:02:52,266 --> 00:02:53,366 in two years. 54 00:02:53,366 --> 00:02:55,333 So it's a real problem. 55 00:02:55,333 --> 00:02:59,500 MILES O'BRIEN: So, this is really a program that encourages bad practices, building in 56 00:03:00,433 --> 00:03:01,633 the wrong place, doesn't it? 57 00:03:01,633 --> 00:03:03,566 LISA DESJARDINS: That's the question. 58 00:03:03,566 --> 00:03:04,833 And, of course, there's some people who say communities should be here. 59 00:03:04,833 --> 00:03:06,100 How do we support those communities? 60 00:03:06,100 --> 00:03:08,066 Someone has to pay for it. 61 00:03:08,066 --> 00:03:11,100 But others say, well, the federal government is taking this risk and encouraging them, 62 00:03:11,100 --> 00:03:12,666 and that's a problem long-term. 63 00:03:12,666 --> 00:03:14,733 There hasn't been a serious debate yet about those issues. 64 00:03:14,733 --> 00:03:17,766 MILES O'BRIEN: It is going to be an awfully busy September here in Washington, when you 65 00:03:17,766 --> 00:03:19,666 consider all the things on the plate, including this one. 66 00:03:19,666 --> 00:03:21,800 LISA DESJARDINS: I think that's right. 67 00:03:21,800 --> 00:03:24,633 And here's the trick, is that there may not be time to have the really difficult debates, 68 00:03:24,633 --> 00:03:26,700 as we're saying. 69 00:03:26,700 --> 00:03:29,933 Another issue with this flood insurance program that lawmakers haven't tackled yet, the maps 70 00:03:29,933 --> 00:03:32,000 are out of date. 71 00:03:32,000 --> 00:03:34,466 And we also know that the maps are changing because the weather patterns are changing. 72 00:03:34,466 --> 00:03:36,566 This is something they haven't tackled. 73 00:03:36,566 --> 00:03:39,800 They have to deal with this flood insurance program, along with, oh, government funding, 74 00:03:39,800 --> 00:03:41,933 which also runs out September 30. 75 00:03:41,933 --> 00:03:45,066 And they have to try and pass a budget, and they're going to try and deal with tax reform. 76 00:03:45,066 --> 00:03:47,666 It's quite a lot. 77 00:03:47,666 --> 00:03:49,700 MILES O'BRIEN: It seems that the climate and the weather is changing faster than the bureaucracy. 78 00:03:49,700 --> 00:03:51,833 I guess that shouldn't come as too much of a surprise, right? 79 00:03:51,833 --> 00:03:53,933 LISA DESJARDINS: No. 80 00:03:53,933 --> 00:03:56,100 Gridlock seems to have more power these days than almost anything in Washington. 81 00:03:56,100 --> 00:03:58,600 MILES O'BRIEN: All right, Lisa Desjardins, thank you very much for that update. 82 00:03:58,600 --> 00:04:00,966 We will be tracking this one very closely. 83 00:04:00,966 --> 00:04:04,966 And you can track all our coverage of Harvey, including ways you can help. 84 00:04:04,966 --> 00:04:07,966 That's on our Web site, PBS.org/NewsHour.