Moves by Florida lawmakers to provide a federal backstop to the state's severely underfunded Hurricane Catastrophe Fund are running into strong headwinds on Capitol Hill.
The latest effort is a bill introduced by Sen. Bill Nelson, D-Fla., that was filed after the Treasury Department declined recently to issue a line of credit to his home state's cat fund, which provides reinsurance to Florida's homeowners insurer of last resort–Citizen's Property Insurance Corp.
The Treasury would not comment, but Sen. Nelson's office confirmed that Assistant Treasury Secretary Alan Krueger told state officials in a phone call several weeks ago that the department doesn't have the authority to issue a line of credit.
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