OMB Seeks Cancellation of Portion of NFIP Debt. The Trump administration is asking Congress to cancel $16 billion of the National Flood Insurance Program’s current $23 billion debt to the Department of the Treasury so that it can continue providing subsidized flood insurance to mortgagors. The Office of Management and Budget made its request along with several legislative reform proposals in a recent letter to Vice President Michael Pence. The proposed debt cancellation and the reforms aim to place the NFIP on sound financial footing and expand the use of private flood insurance. The NFIP’s debt burden is expected to spike with claims from hurricanes Harvey, Irma and Maria. OMB Director Mick Mulvaney warned that NFIP funding could run out by the end of October, including its $30.4 billion in borrowing authority, and leave the program unable to pay claims. Cancellation of the ...