The fate of what is seen as a needed increase in the borrowingauthority of the National Flood Insurance Program before year-endis in doubt as Congress breaks until Wednesday.

For one thing, as of this morning, opposition in the House totax increases of any kind throws into doubt whether Congress willbe able to pass any legislation dealing with the so-called fiscalcliff before year-end. There has been speculation among industrylobbyists that legislation increasing the borrowing authority wouldbe tucked into a bill addressing the fiscal cliff.

In the Senate, a vote this evening cleared the way tonight forfloor action after Christmas on a Sandy aid packageapproved theadministration's $60.4 billion for Sandy reconstruction. The billincludes the Obama administration's request to raise the NIFP'sborrowing cap from the current $20.775 billion to $30.4 billion aspart of the request for $60.4 billion.

The successful vote came as Senate Republicans this week soughtto slash the administration's $60.4 billion to $23.8 billion ininitial aid with a subsequent examination of longer-term needs.

Senator Robert Menendez, D-N.J., said the vote was an indicationthat the body will pass the legislation next week whenconsideration of the bill resumes on Thursday.

“It is my hope that today's progress on the Sandy Relief Packagegives some comfort to the thousands of people in New Jersey whocontinue to bravely rebuild after Superstorm Sandy,” Menendezsaid.

Privately, industry officials blinked when Sen. John McCain,R-Ariz., said on the Senate floor Tuesday that that the bill isrife with unnecessary and unneeded provisions.

“Every one of my colleagues on this side of the aisle want toact quickly to provide the much needed relief for the people whohave been impacted by the horrible effects of Hurricane Sandy,”McCain said. “But we cannot consider this legislation in avacuum.”

McCain pointed to a Congressional Budget Office review of thebill he said found that 64 percent of the funds requested would notbe spent until 2015 at the earliest.

He also objected to specific line items in the bill he said werenot necessary, such as $150 million in aid for fisheries and $120million for a watershed protection program for areas damaged bydrought and wildfire.

Sen. Tom Coburn, R-Okla., another strong voice againstunnecessary federal spending, had also raised strong opposition tothe size of the package.

And, in the House, there are signals that the bill may faceobstacles.

A spokesman for Rep. Hal Rogers, R-Ken., chairman of the HouseAppropriations Committee, says that additional appropriations werenot necessary at the moment.

Jennifer Hing, a Rogers spokeswoman, says, “Before we releaseanother round of federal dollars, let's have all the information weneed to make the best possible decision. Congress has alreadyapproved $7.1 billion, and FEMA has not indicated that more isneeded at this point.”