Latest news with #Maurstad
Politico
12-03-2025
- Business
- Politico
The other Washington debt ceiling no one is talking about
Presented by Editor's note: Morning Money is a free version of POLITICO Pro Financial Services morning newsletter, which is delivered to our subscribers each morning at 5:15 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day's biggest stories. Act on the news with POLITICO Pro. QUICK FIX As Congress moves toward the 33rd temporary reauthorization of the National Flood Insurance Program due Friday, lawmakers are engaging in discussions on how to save a system that millions of Americans rely on. Some former senior NFIP officials say one issue should be at the top of the list — figuring out how to run the program without it being perpetually in debt. The NFIP owes $22.5 billion to the Treasury, primarily due to its inability to fully cover claims from previous natural disasters like Hurricanes Katrina and Helene. Congress forgave $16 billion of debt in 2018, but the program's burden continues to increase, with about $7.9 billion of wiggle room until the $30.43 billion debt ceiling is reached. It's not good public policy to have a mandatory federal government program reliant on debt to succeed, said David Maurstad, a long-time FEMA employee and former Republican lieutenant-governor of Nebraska, who ran the NFIP until July. 'If Congress wants the program, they need to pay for it,' Maurstad said. If the debt ceiling is hit, which both Maurstad and Robert Desaulniers, a former NFIP insurance specialist, said was possible, the program would be unable to approve new policies but still contractually obligated to pay out current policies. Similarly, if Congress fails to approve a short-term government funding bill and the government shuts down Friday, the NFIP won't be able to write any new policies until everything is back up and running. The program's short-term reauthorization is included in the House version of the so-called continuing resolution that would keep the government running. A 'very small handful' of staff who already have their salaries budgeted will continue to be paid and will try to keep the program running, but the majority won't work or be paid until funding is passed, Desaulniers and Maurstad said. Longer term, if Congress doesn't cancel any of the program's debt, lawmakers would have to increase the current limit, or 'the program would face significant challenges' in paying policyholder claims, Maurstad said. Dollars for other program responsibilities would be repurposed to pay claims, forcing the NFIP 'onto even shakier ground,' which wouldn't last long before the program would face default, Maurstad said. The debt issue is on the lawmakers' radar but the long-term fate of the NFIP remains undecided. Sen. Mike Rounds (R-S.D.), a former insurance and real estate agent who chairs Senate Banking's housing and insurance subcommittee, said he wanted to get the NFIP 'actuarially looked at' to determine the program's cost and possible reductions, before making any decisions on debt forgiveness. In the House, Financial Services housing and insurance subcommittee Chair Mike Flood (R-Neb.), said last week he would not consider providing additional NFIP funding. Rounds said his goal was to get the overhaul done 'this year.' Flood said it's 'not a first part of the year priority.' The reality is, premium dollars from policyholders pay the Treasury $619 million annually in interest on the debt, instead of being used for program improvements, which Maurstad said is 'morally reprehensible.' IT'S WEDNESDAY — Feel free to send any insurance or other financial services policy tips and thoughts — or feedback on my Morning Money debut — to Katherine at khapgood@ And as always, send econ policy thoughts, Wall Street tips, personnel moves and general thoughts to Sam at ssutton@ Driving the Day The Labor Department will release the Consumer Price Index for February at 8:30 a.m. … Senate Banking holds a hearing on housing affordability at 10 a.m. … CPI — The consensus estimate among economists is that consumer prices in 'core' sectors of the economy — which exclude volatile food and energy prices – climbed at an annual rate of 3.2 percent last month. Many analysts anticipate a slowdown in price growth in housing – where inflation has been stickier – which would be viewed positively by Federal Reserve policymakers, Sam reports. Still, the uncertainty created by President Donald Trump's trade policy announcements has started to drag on forecasts for future U.S. economic growth – while also stoking concern about higher inflation. 'Unfortunately for markets, it feels that this could be a lose-lose situation,' Julien Lafargue, chief market strategist at Barclays Private Bank, said in a research note. 'A higher-than-expected [CPI] reading could fuel the stagflation narrative while a weaker-than-expected print could cement recession fears. What the market really needs at this point is better visibility on growth rather than on inflation.' CFPB firing meetings defied court order — During day two of the CFPB hearing Tuesday, a bureau employee testified that meetings to lay off 1,200 of 1,700 staff occurred as late as last Thursday, despite a court order Feb. 14 barring the agency from widespread firings after the CFPB employees' union sued Acting Director Russ Vought, per Katy O'Donnell. Ireland at the White House — With Irish Prime Minister Micheál Martin headed to the White House for a meeting with Trump for an (early) St. Patrick's Day celebration, Ireland's business leaders are hopeful that the Taoiseach can navigate increasingly fraught trade policy shifts with one of the country's primary trading partners. Administration officials like Secretary of State Marco Rubio and Commerce Secretary Howard Lutnick have identified the trade deficit with Ireland as a problem. Irish officials have been on a charm offensive this week in advance of the Trump sitdown. Government ministers have been dispatched for appearances across the U.S. and Martin on Monday used an event at South by Southwest to spotlight financial and economic ties between the two countries. Enterprise Ireland Chair Michael Carey, the Irish government's trade and innovation agency and venture capital arm, on Tuesday told Sam that he's working with Irish businesses operating in the U.S. to game out possible scenarios. He also wants to know what type of support his organization may be able to provide in the event of future disruptions — though he declined to speculate on what steps Trump could take. The last major economic disruption – the United Kingdom's exit from the European Union — 'was managed really well by Irish companies,' he said. 'I have no doubt these Irish companies are going to have the capability of responding to whatever happens, but until it happens, it's pointless.' On The Hill Biden-era crypto bill set to be repealed — An IRS rule requiring certain cryptocurrency to report information to the bureau is one step away from extinction after the House voted on Tuesday to repeal it, per Bernie Becker. The Senate passed its own bipartisan vote rolling back the measure last week so the House's vote sends the measure to Trump's desk, with 76 House Democrats supporting rolling back the IRS rule. Warren's objections to the stablecoin bill — Sen. Elizabeth Warren's Senate Banking Committee staff is circulating a policy memo to her Democratic colleagues outlining concerns about a GOP-led stablecoin bill set to be marked up Thursday, as part of an effort to rally other committee lawmakers against the legislation, per Jasper Goodman. The memo, obtained by POLITICO, says an updated version of legislation led by Sen. Bill Hagerty (R-Tenn.) to create a regulatory framework for stablecoins fails to 'protect consumers, national security, U.S. financial stability and competition in the economy.' Lummis races to establish a bitcoin reserve — Sen. Cynthia Lummis (R-Wyo.), one of Congress's leading cryptocurrency advocates, reintroduced legislation Tuesday to establish a 'strategic bitcoin reserve,' renewing a push to have the government stockpile digital assets just days after Trump created a crypto fund via executive order, Jasper reports. House Financial Services divided over Al Green — House Financial Services Chair French Hill (R-Ark.) signaled opposition Monday to kicking Democratic Rep. Al Green (D-Texas) off his committee, setting up a potential rift with conservative hardliners who are seeking to punish the Texas lawmaker, Jasper reports. Green was already censured by the House last week for disrupting Trump's joint address to Congress. Rep. Andy Ogles (R-Tenn.), a Freedom Caucus member who also sits on House Financial Services, filed a resolution that would strip Green and other Democrats of their committee assignments after they sang 'We Shall Overcome' in the House chamber at the censure vote. Hill said in an interview Monday that he doesn't 'believe, at this stage, that that's constructive,' but he added that he will wait and listen to the views of the conference. Tariffs Trump's tariff whiplash — Trump on Tuesday announced plans to double expected tariffs on steel and aluminum imports from Canada to 50 percent in retaliation for Ontario's stiff duties on electricity. Then hours later, after speaking with U.S. Commerce Secretary Howard Lutnick, Ontario Premier Doug Ford announced that he would suspend the 25 percent tariffs on electricity exports Ontario had levied on three U.S. states just a day before, per Ari Hawkins. Trump allies blame Lutnick for tariff turmoil — As Trump struggles to message a scattered economic agenda his Commerce secretary, Howard Lutnick, is taking the blame. White House and administration officials, as well as Trump's outside allies, are growing increasingly frustrated with Lutnick, privately complaining about the close proximity he has to the president and the counsel he is giving him on economic issues, Megan Messerly, Dasha Burns, Ari Hawkins and Daniel Desrochers report. House Republicans slyly move to vote on Trump's tariffs — GOP leadership slipped language into a House rule on their stopgap funding bill that would prevent any member of Congress from bringing up a resolution terminating Trump's declaration of a national emergency over fentanyl and undocumented immigrants entering the U.S. The president has used that emergency declaration to justify his tariffs on Canada, Mexico and China, per Daniel Desrochers, Meredith Lee Hill and Doug Palmer. Rep. Gregory Meeks (D-N.Y.) and Democratic colleagues filed privileged resolutions last week seeking to terminate the national emergency. 'This provision simply prevents the Democrats from limiting the president's authority,' said a senior House GOP leadership aide. Conservatives privately say House GOP leaders wanted to block a vote on tariffs for the entire Congress. But some Republicans pushed back, saying they would only allow it for the rest of this calendar year. At the regulators Treasury cracks down at the border — The Treasury Department on Tuesday ordered money services businesses operating near the U.S. southern border to start reporting cash transactions exceeding $200, which it said was part of a crackdown on the flow of money to Mexican drug cartels, Michael Stratford reports. The 'geographic targeting order' from Treasury's Financial Crimes Enforcement Network imposes new reporting requirements on check cashers, currency exchangers, money transmitters and other money services businesses that are located in 30 ZIP codes in California and Texas near the border. House Republicans' tax policy huddle with Bessent — Republicans on the House Ways and Means Committee met Monday with Treasury Secretary Scott Bessent to review an array of tax options for the GOP's policy agenda, per Benjamin Guggenheim and Jordain Carney. 'We're looking at the menu,' said Rep. Aaron Bean (R-Fla.), a freshman on the committee. 'I don't think we've ordered anything.' Ways and Means Chair Jason Smith (R-Mo.) said he wouldn't share anything about the details of the meeting, only that 'it went very well.' At the White House Ueland tapped for OMB — Trump nominated Eric Ueland, a veteran Senate and White House aide, to serve as deputy director for management at the White House budget office, where he will serve directly under OMB Director Russ Vought, Katherine Tully-McManus reports. Jobs report Issac Boltansky — whose policy analysis is often cited here at Morning Money — has joined the mortgage company PennyMac Financial Services as its new head of public policy. Boltansky was previously the director of policy research at BTIG. Jaliya Nagahawatte joins the office of Rep. Young Kim (R-Calif.) Monday as a financial policy adviser from the office of Rep. John Rose (R-Tenn.). The Managed Funds Association has promoted Jillien Flores to chief advocacy officer, a newly established position within the organization, where she'll be responsible for the industry group's advocacy strategy and execution. Wells Fargo's Robin Ginsburg will retire April 1. She joined the bank in 2012 to lead the National Housing Group in the Government & Institutional Banking business.
Yahoo
30-01-2025
- Politics
- Yahoo
Nebraska disaster responders say ending FEMA would move tasks and costs to states, local governments
LINCOLN (Nebraska Examiner) — President Donald Trump's call to possibly eliminate the Federal Emergency Management Agency has Nebraska officials waiting and worrying, with two former disaster response officials saying that doing away with FEMA would leave a void that would prove difficult to fill, the Nebraska Examiner reports. 'If they do away with FEMA, Nebraska would be in a world of hurt,' said Al Berndt, a former assistant director who managed the Nebraska Emergency Management Agency on a day-to-day basis for 14 years until 2014. 'We just didn't have the people to do what FEMA does.' That sentiment was echoed by Dave Maurstad, a former Nebraska lieutenant governor who went on to serve 15 years as a top FEMA administrator, visiting dozens of disaster sites, from Hurricane Katrina to the tornado that ripped through Joplin, Missouri. Maurstad, who retired in July, said it's certainly appropriate to review FEMA and see if federal disaster response might be streamlined. But, he said, with the increase in severity and frequency of natural catastrophes such as floods, hurricanes and wildfires, someone has to coordinate the response of the 27 federal agencies that provide help. 'At the end of the day, someone has to coordinate that,' Maurstad said. He added that shifting that responsibility to the states would take years — and the hiring of many new employees. Prosecutors seek dismissal of campaign finance case against ex-Nebraska congressman Fortenberry FEMA was created by then President Jimmy Carter in 1979 and is charged with coordinating the federal response to natural disasters. If damages meet federal requirements, the agency provides federal funds for repairs and rebuilding. It also helps Americans prepare for and mitigate such calamities — helping fund flood-control dikes, for instance — and works with local disaster response agencies to calculate damages. Since 2017, FEMA has provided more than $1.3 billion in financial aid to Nebraska agencies to deal with natural disasters, according to federal records. NEMA, an agency with fewer than 60 employees, is a subsidiary of the Nebraska Military Department, which includes the Nebraska National Guard. The Military Department, which operated on a $240 million budget during the last fiscal year, is anticipating getting nearly $98 million from FEMA in the next fiscal year, and $68 million in fiscal year 2026-27, according to the fiscal office of the Nebraska Legislature. All told, 56 federal disaster declarations in the state since 2000 have qualified for federal assistance. Thirty three were severe storms, seven were wildfires and five were floods, including the devastating 'bomb cyclone' floods of 2019, which did in excess of $3 billion in damage to public and private property and infrastructure. FEMA also had a role in the response to COVID-19. Trump, during a recent visit to North Carolina to view flood devastation caused by Hurricane Helene, slammed FEMA for what he perceived as a less-than-effective response, calling the agency 'a disaster.' Later, he signed an executive order creating a council to review FEMA, suggest changes or recommend its elimination. Trump added that federal disaster relief funds might instead be sent directly to states for them to administer. Nebraska lawmakers hear testimony on measure to preempt government-imposed rent control But FEMA does more than just write checks to state and local governments, according to Maurstad and Berndt. The agency does damage assessments, handles individual claims for assistance and helps double check that funds are being used as intended. So, they said, states would have to hire more employees to handle those tasks. Generally, the feds provide 75% of disaster aid, with states and local entities (like cities and counties) evenly dividing the remaining 25% match. Federal disaster aid can only be claimed after local damage reaches a certain threshold. Maurstad said there's an 'urban myth' that FEMA is there to make victims of disasters 'whole again.' That's the role of insurance, he said. But only about 30% of properties within high-risk flood zones are insured, he explained. For instance, he said, flood insurance paid an average of $120,000 per household following the flooding in Houston caused by Hurricane Harvey, while FEMA's individual assistance grants averaged $16,000. Maurstad said there's a natural tension between FEMA rules and how quickly locals want to rebuild. He said coordinating a response is complex due to the multiple agencies involved. And the nation spends far less than needed to make communities more resilient and mitigate damages, he said. Still, he's never heard administrators direct a response to favor 'red' or 'blue' areas. FEMA, though, has gotten wrapped up in politics, particularly during election years. He cited recent claims that FEMA workers were bypassing flood-damaged homes in North Carolina that had Trump signs in their yards, or when Hurricane Katrina victims claimed that then President George W. Bush was slow to mobilize a federal response because New Orleans has been a Democratic stronghold. Maurstad said with the cost of responding to disasters rising, there has been a bipartisan push to see if local governments can pick up more of the costs and do more to mitigate damages. 'There's no question,' he said, that the severity and frequency of disasters is growing, which is backed up by data. Whether that's human caused, Maurstad said, is another question. Nebraska teenager arrested after 168 mph pursuit, NSP says He added that if the review of FEMA results in the elimination of the agency, it would take five years or more for states to ramp up state agencies, and for Congress to adopt rules to govern how federal funds could be spent. 'They're not just going to send a blank check,' Maurstad said. 'Congress isn't going to allow states to spend this money how they like.' Retired Major Gen. Roger Lempke, who as adjutant general of the Nebraska National Guard was the official director of NEMA from 2000-2007, said the state had 'no major issues' with FEMA during his tenure and that his staff had a good relationship with the feds. On April 13, a wildfire raced across Nebraska Highway 2 west of Anselmo. But, he added, the federal disasters during his term — which included the Hallam tornado of 2004 — paled in comparison to the widespread devastation caused by flooding last year from Hurricane Helene and the recent wildfires in the Los Angeles area. Nebraska is somewhat unique in what it gets from FEMA, which only provides aid for damage to public property and infrastructure. As the only state in the union that has 100% public power, damages to electrical lines and power stations owned by the Omaha Public Power District, the Nebraska Public Power District, OPPD, rural electric cooperatives and the labor to restore power are eligible for reimbursement from the federal government. That is not true for privately owned utilities. For instance, NPPD has received $18.5 million from FEMA since 2019, according to a spokesman from the Columbus-based utility. OPPD, meanwhile, has received more than $31 million over the past three years. Both utilities declined to say whether the elimination of FEMA was a good idea or not. The utilities do the work, then seek reimbursement for a portion of their costs, which can take up to two years or more depending on the seriousness of the disaster. Thus, the OPPD figures include some reimbursement from the 2019 floods across Nebraska. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Requests this week for comment from Gov. Jim Pillen and a former governor, now U.S. Sen. Pete Ricketts — both of whom have dealt with federal disasters and FEMA — were not returned. Nebraska emergency management officials reportedly met Tuesday to discuss the president's actions concerning FEMA. But Erv Portis, the current assistant director of NEMA, did not return requests for comment. Nebraska Examiner is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Nebraska Examiner maintains editorial independence. Contact Editor Cate Folsom for questions: info@ Follow Nebraska Examiner on Facebook and X. This story was republished under Creative Commons license CC BY-NC-ND 4.0. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
30-01-2025
- Politics
- Yahoo
Disaster responders say ending FEMA would move tasks and costs to states, local governments
Nebraska Gov. Jim Pillen (center) joins then-State Sen. Lou Ann Linehan of Omaha in her Elkhorn-area district, visiting people in Douglas County who had homes damaged by the tornadoes that hit the area April 26, 2024. (Courtesy of the Governor's Office) LINCOLN — President Donald Trump's call to possibly eliminate the Federal Emergency Management Agency has Nebraska officials waiting and worrying, with two former disaster response officials saying that doing away with FEMA would leave a void that would prove difficult to fill. 'If they do away with FEMA, Nebraska would be in a world of hurt,' said Al Berndt, a former assistant director who managed the Nebraska Emergency Management Agency on a day-to-day basis for 14 years until 2014. 'We just didn't have the people to do what FEMA does.' That sentiment was echoed by Dave Maurstad, a former Nebraska lieutenant governor who went on to serve 15 years as a top FEMA administrator, visiting dozens of disaster sites, from Hurricane Katrina to the tornado that ripped through Joplin, Missouri. Maurstad, who retired in July, said it's certainly appropriate to review FEMA and see if federal disaster response might be streamlined. But, he said, with the increase in severity and frequency of natural catastrophes such as floods, hurricanes and wildfires, someone has to coordinate the response of the 27 federal agencies that provide help. 'At the end of the day, someone has to coordinate that,' Maurstad said. He added that shifting that responsibility to the states would take years — and the hiring of many new employees. FEMA was created by then President Jimmy Carter in 1979 and is charged with coordinating the federal response to natural disasters. If damages meet federal requirements, the agency provides federal funds for repairs and rebuilding. It also helps Americans prepare for and mitigate such calamities — helping fund flood-control dikes, for instance — and works with local disaster response agencies to calculate damages. Since 2017, FEMA has provided more than $1.3 billion in financial aid to Nebraska agencies to deal with natural disasters, according to federal records. NEMA, an agency with fewer than 60 employees, is a subsidiary of the Nebraska Military Department, which includes the Nebraska National Guard. The Military Department, which operated on a $240 million budget during the last fiscal year, is anticipating getting nearly $98 million from FEMA in the next fiscal year, and $68 million in fiscal year 2026-27, according to the fiscal office of the Nebraska Legislature. All told, 56 federal disaster declarations in the state since 2000 have qualified for federal assistance. Thirty three were severe storms, seven were wildfires and five were floods, including the devastating 'bomb cyclone' floods of 2019, which did in excess of $3 billion in damage to public and private property and infrastructure. FEMA also had a role in the response to COVID-19. Trump, during a recent visit to North Carolina to view flood devastation caused by Hurricane Helene, slammed FEMA for what he perceived as a less-than-effective response, calling the agency 'a disaster.' Later, he signed an executive order creating a council to review FEMA, suggest changes or recommend its elimination. Trump added that federal disaster relief funds might instead be sent directly to states for them to administer. But FEMA does more than just write checks to state and local governments, according to Maurstad and Berndt. The agency does damage assessments, handles individual claims for assistance and helps double check that funds are being used as intended. So, they said, states would have to hire more employees to handle those tasks. Generally, the feds provide 75% of disaster aid, with states and local entities (like cities and counties) evenly dividing the remaining 25% match. Federal disaster aid can only be claimed after local damage reaches a certain threshold. Maurstad said there's an 'urban myth' that FEMA is there to make victims of disasters 'whole again.' That's the role of insurance, he said. But only about 30% of properties within high-risk flood zones are insured, he explained. For instance, he said, flood insurance paid an average of $120,000 per household following the flooding in Houston caused by Hurricane Harvey, while FEMA's individual assistance grants averaged $16,000. Maurstad said there's a natural tension between FEMA rules and how quickly locals want to rebuild. He said coordinating a response is complex due to the multiple agencies involved. And the nation spends far less than needed to make communities more resilient and mitigate damages, he said. Still, he's never heard administrators direct a response to favor 'red' or 'blue' areas. FEMA, though, has gotten wrapped up in politics, particularly during election years. He cited recent claims that FEMA workers were bypassing flood-damaged homes in North Carolina that had Trump signs in their yards, or when Hurricane Katrina victims claimed that then President George W. Bush was slow to mobilize a federal response because New Orleans has been a Democratic stronghold. Get rid of FEMA? Trump-appointed group to look at shifting disaster response to states Maurstad said with the cost of responding to disasters rising, there has been a bipartisan push to see if local governments can pick up more of the costs and do more to mitigate damages. 'There's no question,' he said, that the severity and frequency of disasters is growing, which is backed up by data. Whether that's human caused, Maurstad said, is another question. He added that if the review of FEMA results in the elimination of the agency, it would take five years or more for states to ramp up state agencies, and for Congress to adopt rules to govern how federal funds could be spent. 'They're not just going to send a blank check,' Maurstad said. 'Congress isn't going to allow states to spend this money how they like.' Retired Major Gen. Roger Lempke, who as adjutant general of the Nebraska National Guard was the official director of NEMA from 2000-2007, said the state had 'no major issues' with FEMA during his tenure and that his staff had a good relationship with the feds. But, he added, the federal disasters during his term — which included the Hallam tornado of 2004 — paled in comparison to the widespread devastation caused by flooding last year from Hurricane Helene and the recent wildfires in the Los Angeles area. Nebraska is somewhat unique in what it gets from FEMA, which only provides aid for damage to public property and infrastructure. As the only state in the union that has 100% public power, damages to electrical lines and power stations owned by the Omaha Public Power District, the Nebraska Public Power District, OPPD, rural electric cooperatives and the labor to restore power are eligible for reimbursement from the federal government. That is not true for privately owned utilities. For instance, NPPD has received $18.5 million from FEMA since 2019, according to a spokesman from the Columbus-based utility. OPPD, meanwhile, has received more than $31 million over the past three years. Both utilities declined to say whether the elimination of FEMA was a good idea or not. The utilities do the work, then seek reimbursement for a portion of their costs, which can take up to two years or more depending on the seriousness of the disaster. Thus, the OPPD figures include some reimbursement from the 2019 floods across Nebraska. Requests this week for comment from Gov. Jim Pillen and a former governor, now U.S. Sen. Pete Ricketts — both of whom have dealt with federal disasters and FEMA — were not returned. Nebraska emergency management officials reportedly met Tuesday to discuss the president's actions concerning FEMA. But Erv Portis, the current assistant director of NEMA, did not return requests for comment. SUPPORT: YOU MAKE OUR WORK POSSIBLE
