Trump faces pressure over flood insurance as Florida's coastal risks rise

Donald Trump’s return to the presidency could see him grappling with FEMA policies that pit federal disaster costs against Florida’s vulnerable coastal development, a key political stronghold.

Jake Bittle reports for Grist.

In short:

• FEMA’s rising flood insurance rates and penalties for rebuilding in risky areas threaten Florida’s real estate market, which is heavily reliant on government-subsidized disaster relief.
• Conservative leaders and coastal politicians disagree over whether to continue FEMA’s policies, which save federal funds but burden homeowners.
• Trump, whose Mar-a-Lago estate is insured by FEMA, faces conflicting pressures to either reduce rates or phase out subsidized flood insurance.

Key quote:

“No taxpayer should want their money going into things that are clearly going to get damaged before their time is up.”

— Victoria Salinas, FEMA resilience head

Why this matters:

Florida’s coastal communities are among the most exposed to hurricane damage, holding $2 trillion in vulnerable property. Balancing disaster relief costs with risky development decisions will test the resilience of federal flood insurance programs and coastal economies.

Read more:

• Climate change is making it tough to insure homes in the US
• Florida braces for potential double-digit billion-dollar insurance losses after Hurricane Milton
• Florida's new law mandates flood history disclosure for homebuyers