TRENTON – The Senate Community and Urban Affairs Committee released SR102, a resolution calling on Congress to increase subsidies for the federal flood insurance program.
In July, Congress passed a law that changed the formula that essentially reduced the subsidies for the program substantially. This means insurance carriers could see rate increases of 20 to 25 percent over a period of time, Sen. Jeff Van Drew said Monday.
“I believe it’s going to have a profound effect and have a dampening economic effect,” Van Drew said about the insurance increases.
He added that on behalf of New Jersey, “slow down a little bit and do an economic evaluation” that would look at the effect on economic activity, real estate values, and ratable bases.
“This impacts a whole lot of folks,” he said.
Assemblyman Chris Connors, (R-9), was particularly critical of Congress’s actions.
“It’s amazing Congress can act with such deliberation and action when in the long run it hurts people.”
Connors said the removal of the subsidy is akin to putting “a gun against their head.”
“I think it’s wrong,” he said. “It’s wrong for the people of New Jersey. It’s an inequity that’s being passed on to the state.”