NU Online News Service, Feb.18, 10:42 a.m.EST

WASHINGTON–Legislation to extend the National FloodInsurance Program that is not tied to a jobs bill, is likely tosecure passage before NFIP expires, sources said.

Insurance industry lobbyists, who asked not to be named, saidCongress will act before NFIP's current authorization expires Feb.28, but such reauthorization will not be included in jobslegislation.

A decision as to how to deal with the reauthorization issue,they said yesterday, will be dealt with next week, when Congressreturns from a one-week break, but the latest extension will onlylast until "late May," a source explained.

The crisis for the NFIP was prompted by the collapse ofnegotiations on bipartisan jobs legislation late last week, whichhad included flood insurance program renewal as one of its manyprovisions.

Drafted by the Senate Finance Committee leadership, the measurewas killed Friday by Senate Majority Leader Harry Reid, D-Nev., whosaid he feared Democrats would be criticized for passing a jobscreation bill stuffed with business tax breaks and provisionsbenefitting special interests.

That bill contained a provision extending the NFIP until May31.

The Hiring Incentives to Restore Employment Act (HIRE) wasintroduced as a result of talks earlier in the week betweenrepresentatives of the congressional Republican leadership andPresident Barack Obama.

The main purpose of the bill was to offer incentives tobusinesses to hire new workers amidst the continuing economiccrisis. A vote on that bill had been expected this week.

Sen. Reid and the Obama administration are now at work draftinga scaled-back version.

The NFIP is on its fourth extension since expiring Sept. 30 oflast year, the end of the last fiscal year.

Rep. Barney Frank, D-Mass., chairman of the House FinancialServices Committee, indicated last week that he would seek anothertemporary reauthorization of the program.