Flooding in the United States costs between $179.8 and $496.0 billion per year in damages and economic impact, according to the U.S. Congress Joint Economic Committee (JEC).
The estimated damages in this report are much higher than existing estimates. JEC officials said a key factor in increasing costs relates to the impacts of climate change.
“Communities in New Mexico and across the country feel the economic impacts of flooding directly. This report helps quantify the magnitude of that impact and the urgent need for climate mitigation and resilience efforts to help reduce it,” JEC Chairman Sen. Martin Heinrich (D-NM) said. “Democrats have made vital investments to strengthen our infrastructure and lessen climate-exacerbated disasters, but more action is needed still.”
This new estimate is derived from calculations done by JEC majority staff, as well as from existing research on related costs like damage to infrastructure, lost economic output, and damage to homes, among other costs.
A recent study found that every dollar invested in flood protection saves up to $318 in damages. Further, adaptation measures can prevent job losses and increase employment growth.
The JEC report argues that by investing in climate resilience efforts, the federal government will save money long-term while minimizing the harmful effects of flooding on people’s health, well-being, and finances.