In addition to seeking federal emergency relief funds, New Jersey stands to exacerbate strains on the National Flood Insurance Program, a taxpayer subsidized fund that has absorbed nearly $18 billion in debt following Hurricanes Katrina and Rita seven years ago. The Government Accountability Office has long rated the flood insurance program at “high risk” a reflection of the fact that the federal government is on the hook for potentially enormous losses following major natural disasters. The Federal Emergency Management Agency, which oversees the program, declined to estimate the value of Sandy related claims in New Jersey.
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