42 U.S.C. § 4016 — Financing

Page 6030 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4016 1 See Extension of Limitation on Financing Provisions note below. (Pub. L. 90–448, title XIII, § 1308A, as added Pub. L. 113–89, § 8(a), Mar. 21, 2014, 128 Stat. 1023.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (c), was in the original a reference to ‘‘this title’’ meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the National Flood Insurance Act of 1968, which is classi- fied principally to this chapter. For complete classi- fication of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables. Section 100230 of the Biggert-Waters Flood Insurance Reform Act of 2012, referred to in subsec. (c), is section 100230 of Pub. L. 112–141, which is set out as a note under section 4014 of this title. § 4016. Financing (a) Authority to issue notes and other obligations All authority which was vested in the Housing and Home Finance Administrator by virtue of section 2414(e) of this title (pertaining to the issue of notes or other obligations to the Sec- retary of the Treasury), as amended by sub- sections (a) and (b) of section 1303 of this Act, shall be available to the Administrator for the purpose of carrying out the flood insurance pro- gram under this chapter; except that the total amount of notes and obligations which may be issued by the Administrator pursuant to such authority (1) without the approval of the Presi- dent, may not exceed $500,000,000, and (2) with the approval of the President, may not exceed $1,500,000,000 through the date specified in sec- tion 4026 of this title, and $1,000,000,000 there- after; except that, through September 30, 2023,1 clause (2) of this sentence shall be applied by substituting ‘‘$30,425,000,000’’ for ‘‘$1,500,000,000’’. The Administrator shall report to the Com- mittee on Banking, Finance and Urban Affairs of the House of Representatives and the Com- mittee on Banking, Housing, and Urban Affairs of the Senate at any time when he requests the approval of the President in accordance with the preceding sentence. (b) Deposit of borrowed funds Any funds borrowed by the Administrator under this authority shall, from time to time, be deposited in the National Flood Insurance Fund established under section 4017 of this title. (c) Schedule of repayments Upon the exercise of the authority established under subsection (a), the Administrator shall transmit a schedule for repayment of such amounts to— (1) the Secretary of the Treasury; (2) the Committee on Banking, Housing, and Urban Affairs of the Senate; and (3) the Committee on Financial Services of the House of Representatives. (d) Reports on repayment In connection with any funds borrowed by the Administrator under the authority established in subsection (a), the Administrator, beginning 6 months after the date on which such funds are borrowed, and continuing every 6 months there- after until such borrowed funds are fully repaid, shall submit a report on the progress of such re- payment to— (1) the Secretary of the Treasury; (2) the Committee on Banking, Housing, and Urban Affairs of the Senate; and (3) the Committee on Financial Services of the House of Representatives. (Pub. L. 90–448, title XIII, § 1309, Aug. 1, 1968, 82 Stat. 577; Pub. L. 89–174, § 5(a), Sept. 9, 1965, 79 Stat. 669; Pub. L. 93–234, title I, § 104, Dec. 31, 1973, 87 Stat. 979; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 98–479, title II, § 204(g), Oct. 17, 1984, 98 Stat. 2233; Pub. L. 104–208, div. A, title V, Sept. 30, 1996, 110 Stat. 3009–521; Pub. L. 105–65, title III, Oct. 27, 1997, 111 Stat. 1377; Pub. L. 105–276, title III, Oct. 21, 1998, 112 Stat. 2502; Pub. L. 106–74, title III, Oct. 20, 1999, 113 Stat. 1088; Pub. L. 106–377, § 1(a)(1) [title III], Oct. 27, 2000, 114 Stat. 1441, 1441A–47; Pub. L. 107–73, title III, Nov. 26, 2001, 115 Stat. 689; Pub. L. 108–3, § 2(a)(1), Jan. 13, 2003, 117 Stat. 7; Pub. L. 108–171, § 2(a)(2), Dec. 6, 2003, 117 Stat. 2064; Pub. L. 108–199, div. H, § 136(a)(2), Jan. 23, 2004, 118 Stat. 442; Pub. L. 108–264, title I, § 101(a), June 30, 2004, 118 Stat. 714; Pub. L. 109–65, § 2, Sept. 20, 2005, 119 Stat. 1998; Pub. L. 109–106, § 2, Nov. 21, 2005, 119 Stat. 2288; Pub. L. 109–208, § 2, Mar. 23, 2006, 120 Stat. 317; Pub. L. 111–196, § 2(b), July 2, 2010, 124 Stat. 1352; Pub. L. 111–250, § 2(b), Sept. 30, 2010, 124 Stat. 2630; Pub. L. 112–74, div. D, title V, § 573, Dec. 23, 2011, 125 Stat. 985; Pub. L. 112–123, § 1(b), May 31, 2012, 126 Stat. 365; Pub. L. 112–141, div. F, title II, §§ 100203(a), 100213(a), 100238(b)(1), July 6, 2012, 126 Stat. 916, 923, 958; Pub. L. 113–1, § 1(a), Jan. 6, 2013, 127 Stat. 3; Pub. L. 115–225, § 2(a), July 31, 2018, 132 Stat. 1624; Pub. L. 115–281, § 2(a), Dec. 1, 2018, 132 Stat. 4191; Pub. L. 115–396, § 2(a), Dec. 21, 2018, 132 Stat. 5296; Pub. L. 116–19, § 2(a), May 31, 2019, 133 Stat. 870; Pub. L. 116–20, title XII, § 1207(a), June 6, 2019, 133 Stat. 901; Pub. L. 116–159, div. A, § 146(a), Oct. 1, 2020, 134 Stat. 718; Pub. L. 117–103, div. O, title I, § 101(a), Mar. 15, 2022, 136 Stat. 787; Pub. L. 117–328, div. AA, title IX, § 901(a), Dec. 29, 2022, 136 Stat. 5551.) Editorial Notes REFERENCES IN TEXT Section 1303 of this Act, referred to in subsec. (a), means section 1303 of Pub. L. 90–448, which amended section 2414(e) of this title. This chapter, referred to in subsec. (a), was in the original a reference to ‘‘this title’’ meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the National Flood Insurance Act of 1968, which is classi- fied principally to this chapter. For complete classi- fication of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables. AMENDMENTS 2022—Subsec. (a). Pub. L. 117–328 substituted ‘‘Sep- tember 30, 2023’’ for ‘‘September 30, 2022’’. Pub. L. 117–103 substituted ‘‘September 30, 2022’’ for ‘‘September 30, 2021’’. 2020—Subsec. (a). Pub. L. 116–159 substituted ‘‘Sep- tember 30, 2021’’ for ‘‘September 30, 2019’’. 2019—Subsec. (a). Pub. L. 116–20 substituted ‘‘Sep- tember 30, 2019’’ for ‘‘June 14, 2019’’. Pub. L. 116–19 substituted ‘‘June 14, 2019’’ for ‘‘May 31, 2019’’. 2018—Subsec. (a). Pub. L. 115–396 substituted ‘‘May 31, 2019’’ for ‘‘December 7, 2018’’. Page 6031 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4016 Pub. L. 115–281 substituted ‘‘December 7, 2018’’ for ‘‘November 30, 2018’’. Pub. L. 115–225 substituted ‘‘November 30, 2018’’ for ‘‘September 30, 2017’’. 2013—Subsec. (a). Pub. L. 113–1 substituted ‘‘$30,425,000,000’’ for ‘‘$20,725,000,000’’. 2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), sub- stituted ‘‘Administrator’’ for ‘‘Director’’ wherever ap- pearing. Pub. L. 112–141, § 100203(a), substituted ‘‘September 30, 2017’’ for ‘‘July 31, 2012’’. Pub. L. 112–123 substituted ‘‘July 31, 2012’’ for ‘‘the earlier of the date of the enactment into law of an Act that specifically amends the date specified in this sec- tion or May 31, 2012’’. Subsec. (b). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’. Subsecs. (c), (d). Pub. L. 112–141, § 100213(a), added sub- secs. (c) and (d). 2011—Subsec. (a). Pub. L. 112–74 substituted ‘‘the ear- lier of the date of the enactment into law of an Act that specifically amends the date specified in this sec- tion or May 31, 2012’’ for ‘‘September 30, 2011’’. 2010—Subsec. (a). Pub. L. 111–250 substituted ‘‘Sep- tember 30, 2011’’ for ‘‘September 30, 2010’’. Pub. L. 111–196 substituted ‘‘September 30, 2010’’ for ‘‘September 30, 2008’’ and ‘‘$20,725,000,000’’ for ‘‘$20,775,000,000’’. 2006—Subsec. (a). Pub. L. 109–208 substituted ‘‘$20,775,000,000’’ for ‘‘$18,500,000,000’’ in first sentence. 2005—Subsec. (a). Pub. L. 109–106 substituted ‘‘$18,500,000,000’’ for ‘‘$3,500,000,000’’ in first sentence. Pub. L. 109–65 inserted ‘‘; except that, through Sep- tember 30, 2008, clause (2) of this sentence shall be ap- plied by substituting ‘$3,500,000,000’ for ‘$1,500,000,000’ ’’ before period at end of first sentence. 2004—Subsec. (a). Pub. L. 108–264, § 101(a), which di- rected amendment of first sentence of subsec. (a) by substituting ‘‘through the date specified in section 4026 of this title, and’’ for ‘‘ ‘through December’ and all that follows through ‘, and’ ’’, could not be executed because the language to be struck out did not appear subse- quent to amendment by Pub. L. 108–171. See 2003 Amendment note below. Pub. L. 108–199 made amendment identical to that made by Pub. L. 108–171. See 2003 Amendment note below. 2003—Subsec. (a)(2). Pub. L. 108–171 substituted ‘‘the date specified in section 4026 of this title’’ for ‘‘Decem- ber 31, 2003’’. Pub. L. 108–3 substituted ‘‘December 31, 2003’’ for ‘‘De- cember 31, 2002’’. 2001—Subsec. (a)(2). Pub. L. 107–73 substituted ‘‘2002’’ for ‘‘2001’’. 2000—Subsec. (a)(2). Pub. L. 106–377 substituted ‘‘De- cember 31, 2001’’ for ‘‘September 30, 2000’’. 1999—Subsec. (a)(2). Pub. L. 106–74, which directed substitution of ‘‘2000’’ for ‘‘1999’’ in section ‘‘1309(a)(2) of the National Flood Insurance Act’’, was executed to subsec. (a)(2) of this section, which is section 1309 of the National Flood Insurance Act of 1968, to reflect the probable intent of Congress. 1998—Subsec. (a)(2). Pub. L. 105–276, which directed substitution of ‘‘1999’’ for ‘‘1998’’ in section ‘‘1309(a)(2) of the National Flood Insurance Act’’, was executed by making the substitution in subsec. (a)(2) of this sec- tion, which is section 1309 of the National Flood Insur- ance Act of 1968, to reflect the probable intent of Con- gress. 1997—Subsec. (a)(2). Pub. L. 105–65, which directed substitution of ‘‘1998’’ for ‘‘1997’’ in section ‘‘1309(a)(2) of the National Flood Insurance Act’’, was executed by making the substitution in subsec. (a)(2) of this sec- tion, which is section 1309 of the National Flood Insur- ance Act of 1968, to reflect the probable intent of Con- gress. 1996—Subsec. (a)(2). Pub. L. 104–208 substituted ‘‘$1,500,000,000 through September 30, 1997, and $1,000,000,000 thereafter’’ for ‘‘$1,000,000,000’’. 1984—Subsec. (a). Pub. L. 98–479 substituted ‘‘, Finance and Urban Affairs’’ for ‘‘and Currency’’ and inserted a comma after ‘‘Housing’’ in last sentence. 1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Sec- retary’’ wherever appearing. 1973—Subsec. (a). Pub. L. 93–234 substituted provi- sions respecting issuance of notes and obligation for $500,000,000 without approval of President and for $1,000,000,000 with approval of President, for former pro- vision prescribing a $250,000,000 limitation, struck out provision rescinding authority of Secretary to issue notes and obligations under section 2414(e) of this title, and provided for report to Congressional Committees when the approval of the President is requested. Statutory Notes and Related Subsidiaries CHANGE OF NAME Reference to the Director of the Federal Emergency Management Agency in any law, rule, regulation, cer- tificate, directive, instruction, or other official paper, considered to refer and apply to the Administrator of the Federal Emergency Management Agency, see sec- tion 612(f)(2) of Pub. L. 109–295, set out as a note under section 313 of Title 6, Domestic Security. Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com- mittee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. EFFECTIVE DATE OF 2022 AMENDMENT Pub. L. 117–328, div. AA, title IX, § 901(c), Dec. 29, 2022, 136 Stat. 5551, provided that: ‘‘The amendments made by subsections (a) and (b) [amending this section and section 4026 of this title] shall take effect as if enacted on September 30, 2022.’’ EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116–159, div. A, § 146(c), Oct. 1, 2020, 134 Stat. 718, provided that: ‘‘(1) This section [amending this section and section 4026 of this title] shall become effective immediately upon enactment of this Act [div. A of Pub. L. 116–159, approved Oct. 1, 2020]. ‘‘(2) If this Act is enacted after September 30, 2020, this section shall be applied as if it were in effect on September 30, 2020.’’ EFFECTIVE DATE OF 2019 AMENDMENT Pub. L. 116–20, title XII, § 1207(c), June 6, 2019, 133 Stat. 901, provided that: ‘‘If this Act is enacted after June 14, 2019 [Pub. L. 116–20 enacted on June 6, 2019], the amendments made by subsections (a) and (b) [amending this section and section 4026 of this title] shall take effect as if enacted on June 14, 2019.’’ Pub. L. 116–19, § 2(c), May 31, 2019, 133 Stat. 870, pro- vided that: ‘‘If this Act is enacted after May 31, 2019 [Pub. L. 116–19 enacted on May 31, 2019], the amend- ments made by subsections (a) and (b) [amending this section and section 4026 of this title] shall take effect as if enacted on May 31, 2019.’’ EFFECTIVE DATE OF 2018 AMENDMENT Pub. L. 115–396, § 2(c), Dec. 21, 2018, 132 Stat. 5296, pro- vided that: ‘‘If this Act is enacted after December 7, 2018 [Pub. L. 115–396 enacted on Dec. 21, 2018], the amendments made by subsections (a) and (b) [amending this section and section 4026 of this title] shall take ef- fect as if enacted on December 7, 2018.’’ EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–196, § 2(c), July 2, 2010, 124 Stat. 1352, pro- vided that: ‘‘The amendments made by subsections (a) Page 6032 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4017 and (b) [amending this section and section 4026 of this title] shall be considered to have taken effect on May 31, 2010.’’ EFFECTIVE DATE OF 2004 AMENDMENT Pub. L. 108–199, div. H, § 136(b), Jan. 23, 2004, 118 Stat. 442, provided that: ‘‘The amendments made by this sec- tion [amending this section and sections 4026, 4056, and 4127 of this title] shall be considered to have taken ef- fect on December 31, 2003.’’ EFFECTIVE DATE OF 2003 AMENDMENTS Pub. L. 108–171, § 2(b), Dec. 6, 2003, 117 Stat. 2064, pro- vided that: ‘‘The amendments made by this section [amending this section and sections 4026, 4056, and 4127 of this title] shall be considered to have taken effect on December 31, 2003.’’ Pub. L. 108–3, § 2(b), Jan. 13, 2003, 117 Stat. 7, provided that: ‘‘The amendments made by this section [amend- ing this section and sections 4026, 4056, and 4127 of this title] shall be considered to have taken effect on De- cember 31, 2002.’’ EFFECTIVE DATE Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see sec- tion 1377 of Pub. L. 90–448, set out as a note under sec- tion 4001 of this title. TRANSFER OF FUNCTIONS For transfer of all functions, personnel, assets, com- ponents, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emer- gency Management relating thereto, to the Federal Emergency Management Agency, see section 315(a)(1) of Title 6, Domestic Security. For transfer of functions, personnel, assets, and li- abilities of the Federal Emergency Management Agen- cy, including the functions of the Director of the Fed- eral Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treat- ment of related references, see former section 313(1) and sections 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. Functions of Housing and Home Finance Agency and head thereof transferred to Secretary of Housing and Urban Development by Pub. L. 89–174, § 5(a), Sept. 9, 1965, 79 Stat. 669, which is classified to section 3534(a) of this title. Section 9(c) of such act, set out as a note under section 3531 of this title, provides that references to Housing and Home Finance Agency or to any agency or officer therein are to be deemed to mean Secretary of Housing and Urban Development and that Housing and Home Finance Agency has lapsed. EXTENSION OF LIMITATION ON FINANCING PROVISIONS Pub. L. 118–47, div. G, title I, § 101(a), Mar. 23, 2024, 138 Stat. 856, provided that: ‘‘Section 1309(a) of the Na- tional Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) shall be applied by substituting ‘September 30, 2024’ for ‘September 30, 2023’.’’ [Pub. L. 118–47, div. G, title I, § 101(c), Mar. 23, 2024, 138 Stat. 856, provided that: ‘‘This section [enacting section 101(a) of div. G of Pub. L. 118–47, set out above, and sec- tion 101(b) of div. G of Pub. L. 118–47, set out as a note under section 4026 of this title] shall take effect as if enacted on September 30, 2023.’’] For nonamendatory provisions extending both the limitation on financing provisions in subsec. (a) of this section and the National Flood Insurance Program gen- erally, see Extension of Program notes under section 4026 of this title. Executive Documents TRANSFER OF FUNCTIONS Functions vested in Secretary of Housing and Urban Development pursuant to this chapter transferred to Director of Federal Emergency Management Agency pursuant to Reorg. Plan No. 3 of 1978, § 202, June 19, 1978, 43 F.R. 41944, 92 Stat. 3788, set out as a note under section 2201 of Title 15, Commerce and Trade, effective Apr. 1, 1979, as provided by Ex. Ord. No. 12127, Mar. 31, 1979, 44 F.R. 19367, set out as a note under section 2201 of Title 15. § 4017. National Flood Insurance Fund (a) Establishment; availability To carry out the flood insurance program au- thorized by this chapter, the Administrator shall establish in the Treasury of the United States a National Flood Insurance Fund (herein- after referred to as the ‘‘fund’’) which shall be an account separate from any other accounts or funds available to the Administrator and shall be available as described in subsection (f), with- out fiscal year limitation (except as otherwise provided in this section)— (1) for making such payments as may, from time to time, be required under section 4054 of this title; (2) to pay reinsurance claims under the ex- cess loss reinsurance coverage provided under section 4055 of this title; (3) to repay to the Secretary of the Treasury such sums as may be borrowed from him (to- gether with interest) in accordance with the authority provided in section 4016 of this title; and (4) to the extent approved in appropriations Acts, to pay any administrative expenses of the flood insurance and floodplain manage- ment programs (including the costs of map- ping activities under section 4101 of this title); (5) for the purposes specified in subsection (d) under the conditions provided therein; (6) for carrying out the program under sec- tion 4022(b) of this title; (7) for transfers to the National Flood Miti- gation Fund, but only to the extent provided in section 4104d(b)(1) of this title; and (8) for carrying out section 4104(f) of this title. (b) Credits to Fund The fund shall be credited with— (1) such funds borrowed in accordance with the authority provided in section 4016 of this title as may from time to time be deposited in the fund; (2) premiums, fees, or other charges which may be paid or collected in connection with the excess loss reinsurance coverage provided under section 4055 of this title; (3) such amounts as may be advanced to the fund from appropriations in order to maintain the fund in an operative condition adequate to meet its liabilities; (4) interest which may be earned on invest- ments of the fund pursuant to subsection (c); (5) such sums as are required to be paid to the Administrator under section 4015(d) of this title; and (6) receipts from any other operations under this chapter (including premiums under the