Who gains from saving nature
Ledger 1 : 33 — For each dollar financing nature-based solutions in 2023, about $33 financed activities harmful to nature. (UNEP)
Cases / Insurance, liability and compensation funds · United States · 2017–2026

US National Flood Insurance Program debt and FEMA reinsurance

Nature's voice · report
No measurement of the harm done to me here is on record.
Did nature suffer? Not measured.
Not on record
  • The record does not name which of my species, waters, soils or forests were harmed.
What the record lacks: 2 none on record · 1 not measured · 3 unclear See the gaps

The US National Flood Insurance Program owed the Treasury USD 22.525 billion in March 2026. FEMA bought reinsurance in 2017 and a catastrophe bond in 2021 to transfer part of the program's flood risk to private capital.

USD 22.525 billionNFIP debt to the US Treasury
As of March 2026, per the Congressional Research Service.

Status As of 10 March 2026: NFIP owed the Treasury USD 22.525 billion, with USD 7.9 billion of borrowing authority remaining.

What?
The NFIP owed the Treasury USD 22.525 billion and FEMA bought reinsurance and a catastrophe bond to transfer part of its flood risk. Congressional Research Service (via EveryCRSReport)
Where?
United States. Congressional Research Service (via EveryCRSReport)
When?
Reinsurance 2017; catastrophe bond 2021; debt figures February 2025 and March 2026. Congressional Research Service (via EveryCRSReport)
Who?
Gained
  • FEMA / NFIP — Expected to collect USD 1.042 billion from reinsurance for a USD 150 million premium (2017) Insurance Journal
Lost
Harmed
None on record
Why?
The sources reviewed do not set out FEMA's stated reason beyond transferring risk.
How?
The NFIP borrows from the Treasury after large events and buys reinsurance and catastrophe bond cover. Congressional Research Service (via EveryCRSReport)
6 of 6 questions answered from the record

What happened

The record, in order.

The Congressional Research Service (CRS) reported on 10 March 2026 that the National Flood Insurance Program (NFIP) owed the US Treasury USD 22.525 billion. It added that the program had borrowed a further USD 2 billion in February 2025 and that USD 7.9 billion of borrowing authority remained.

Insurance Journal reported on 6 December 2017 that FEMA had paid a reinsurance premium of USD 150 million in 2017 and expected to collect its full USD 1.042 billion limit for claims after Hurricane Harvey.

In 2021 FEMA placed a catastrophe bond, FloodSmart Re 2021-1, providing USD 575 million of flood protection. Artemis reported a first-year premium of about USD 79.4 million.

The sources reviewed do not report any assessment of the effect of the program's design on flood-prone ecosystems.

  1. 2017FEMA pays a USD 150 million reinsurance premium and expects to collect USD 1.042 billion after Hurricane Harvey (Insurance Journal, 6 December)
  2. 2021FEMA places the FloodSmart Re 2021-1 catastrophe bond: USD 575 million of protection, first-year premium about USD 79.4 million
  3. 2025NFIP borrows a further USD 2 billion from the Treasury (February)
  4. 2026CRS reports NFIP debt of USD 22.525 billion and USD 7.9 billion of remaining borrowing authority (10 March)

How it looked

What was shown, beside what was recorded.

Shown

    Recorded

    • NFIP owed the Treasury USD 22.525 billion; USD 2 billion of additional borrowing in February 2025; USD 7.9 billion of authority remaining (CRS, 10 March 2026).
      Congressional Research Service (via EveryCRSReport)
    • FEMA paid a USD 150 million reinsurance premium in 2017 and expected to collect a USD 1.042 billion limit after Harvey.
      Insurance Journal
    • FloodSmart Re 2021-1: USD 575 million of protection; first-year premium about USD 79.4 million.
      Artemis

    In court and with insurers

    Every proceeding and every insurer decision on record.

    Lawsuits and rulings

    No court case on record. No court has ruled on this case.

    Insurers

    1. 2017No policy found$1.04bn Limit FEMA expected to collect, USD m
      Reinsurers (not named in the sources reviewed) → FEMA / NFIP

      FEMA paid a USD 150 million premium and expected to collect the full USD 1.042 billion limit after Hurricane Harvey. No source reviewed confirms final payment. Insurance Journal

    2. 2021No policy found$575m Protection, USD m
      Catastrophe bond investors (FloodSmart Re 2021-1) → FEMA / NFIP

      USD 575 million of flood protection with a first-year premium of about USD 79.4 million. No payout is on record in the sources reviewed. Artemis

    What nature saw

    Outcomes measured on the ground, and nature's note.

    Nature's report opens this page. Below: further outcomes measured on the ground.

    NFIP debt to the Treasury
    USD 22.525bn
    CRS, 10 March 2026
    Independent ecological evaluation
    None found
    The sources reviewed do not assess effects on flood-prone ecosystems

    What we don't know

    Undisclosed, unproven, untried: recorded as data.

    Nature

    • Not measured Harm to nature: The record holds no measurement of harm to nature.

    Insurers

    • Unclear Reinsurers (not named in the sources reviewed): no decision on record.
    • Unclear Catastrophe bond investors (FloodSmart Re 2021-1): no decision on record.

    Record

    • Unclear Whether FEMA's 2017 reinsurance claim was paid in full: the source reviewed reports an expectation of full recovery, and no source reviewed confirms the final payment.
    • None on record Any payout under the 2021 catastrophe bond is not on record in the sources reviewed.
    • None on record No source reviewed states a repayment schedule for the NFIP debt.

    Did the harm stop?

    Not applicable: the sources reviewed record no measure on the debt and no ecological effect.

    Who paid?

    The debt is owed to the US Treasury; the sources reviewed do not state who will repay it.

    Sources

    Voices on record: — Company or project✓ Government and regulators— Courts✓ Press and investigations— Communities and civil society— Researchers

    Government and regulators

    1. CRS Insight IN10784: National Flood Insurance Program debt
      Congressional Research Service (via EveryCRSReport) · 2026-03-10

    Press and investigations

    Terms used on this page

    Insurance

    Premium
    The price paid for an insurance policy.
    Reinsurance
    Insurance bought by insurers to pass part of their own risk to other companies.
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