Flood Insurance Surcharge May Help Pay For Border Wall: Reports

Ocean County residents who are rebuilding from the devastation of Superstorm Sandy may face surcharges on their flood insurance that could help the federal government pay for the border wall promised by President Donald J. Trump, according to reports.

According to a report by the Washington Post on a draft plan on funding the wall by the federal Office of Management and Budget, the proposed surcharge is included with plans to make significant cuts in the budget for the U.S. Coast Guard, the Transportation Safety Administration and the Federal Emergency Management Agency. All three agencies are under the Department of Homeland Security.

According to the Washington Post, $2.9 billion would go to building the wall, Customs Enforcement expenses and $285 million set aside to hire 500 more Border Patrol agents and 1,000 more ICE agents and support staffers.

FEMA has been under fire in New Jersey in the wake of Superstorm Sandy, where hundreds of homeowners continue to fight their way through red tape to rebuild and face significantly higher flood insurance premiums under the National Flood Insurance Program as flood zones were revamped.

Roy E. Wright, FEMA's deputy associate administrator for insurance and mitigation, spoke before the House Financial Services subcommittee on Thursday and under questioning told lawmakers he could not comment on the possibility of a surcharge to help fund Trump's proposed wall.

Rep. Tom MacArthur, who represents the Third District, including Toms River, Brick, Berkeley, Lacey and other Southern Ocean county coastal towns, told North Jersey.com that a surcharge would be too much to ask of policyholders.

"The victims of flood claims have really struggled enough," MacArthur, a Republican, told North Jersey.com. "Premiums have been increasing at pretty significant rates, and in a lot of cases people didn't get treated fairly in the process. So I think to add another surcharge, to me, the two should not be connected."

Rep. Frank Pallone, a Democrat who represents the Sixth District, which includes many of Monmouth County's coastal towns and the Raritan Bayshore, which was equally hard-hit during Sandy, issued a more pointed statement:

“President Trump is turning to working families, many of whom suffered during Sandy, to pay for his beloved wall," Pallone said. "I will fight any proposal to place the burden of President Trump’s extreme immigration policy on flood insurance policy holders and New Jersey’s working families.”

The Asbury Park Press reported flood insurance rates rose an average of 9 percent last week and could go up an additional 6 percent this year, with the average policyholder paying $878 for flood insurance in 2017. When surcharges and fees are included, the average flood insurance policy costs $1,005, according to FEMA.

A flooded road in Bayville following Superstorm Sandy. Photo by Karen Wall