NU Online News Service

WASHINGTON--The National Flood Insurance Program willbe allowed to expire once again, a victim of a feud between theHouse and Senate over proposed legislative changes for NFIP.

The Senate adjourned today without passing an enabling measureto keep the NFIP in business past Sunday, when the current enablinglaw expires.

Last week the House passed H.R. 4851, legislation containing thetemporary flood program extension until April 30. That actioncreated an impasse between the House bill and a Senate bill whichcontains a provision extending the NFIP until Dec. 31.

At the time of the House action talks were underway with theSenate over the substance of tax cuts that would be extended underthe legislation containing the NFIP extension.

House members feel the flood program legislation should containspecific provisions they want for their constituents.

An NFIP extension until Dec. 31 is contained in another Housebill (H.R. 4213) which extends a number of tax cut provisions thatexpired at the end of last year. It was passed by the Senate lastweek and sent back to the House for further action.

The latest House bill, as does the Senate bill, extends theeligibility for a 65 percent government subsidy of COBRA healthinsurance premiums for laid-off workers. But the House extensionwould only be until April 30; the Senate bill extends the programuntil Dec. 31.

In reaction to the Senate's latest move, Matt Brady, a spokesmanfor the National Association of Mutual Insurance Companies, said:"First it was a few hours, then a couple of days, and now we arelooking at having the National Flood Insurance Program lapse forweeks--and each time for reasons that have little or nothing to dowith the program itself."

Flood coverage will remain in place for those who have it nowunder guidelines from the Federal Emergency Management Agency,which encompasses NFIP.

But, Brady warned, "this lapse could have a serious impact onthose who are hoping to close on a home sale in the next few weeks.Once the program is reauthorized after Congress returns fromrecess, we hope lawmakers will take the time to enact a long-termextension with common-sense, bipartisan reforms that will ensurethe financial stability of the NFIP."