NU Online News Service, Dec. 16, 1:01 p.m. EST

Congress appears ready to pass a short-term National Flood Insurance Program reauthorization by midnight tonight, according to insurance-industry lobbyists, who add that a long-term extension is still "in play."

The short-term extension, which would keep the program going through May 31, 2012, would be included in a "minibus" package tonight that would avoid a government shutdown by the weekend.

The House has passed its bill, the "Consolidated Appropriations Act." The Senate has until midnight to act in order to keep both the government and the NFIP running.

Charles Symington, senior vice president, government affairs, for the Independent Insurance Agents and Brokers of America, says, "We are grateful to the House and Senate for including a five and a half-month extension of the NFIP in the minibus appropriations legislation that is expected to pass later today in both chambers."

Industry lobbyists say that Sen. Harry Reid, D-Nev., and Sen. Mitch McConnell, R-Ky., are also considering including legislation reauthorizing the NFIP until Sept. 30, 2016 as a pay-for in another bill that would extend tax breaks for the middle class and long-term unemployment insurance.

The House included a 5-year NFIP extension in a bill extending the tax breaks earlier this week.

However, the Senate version of the tax-extension bill may not match the House version since Reid and the Obama administration have taken issue with the House bill, called the "Middle Class Tax Relief & Job Creation Act of 2011."

Matt Gannon, assistant vice president of federal affairs for the National Association of Mutual Insurance Companies, puts the odds of Congress passing a long-term extension of the program this weekend at 50-50.

At the same time, it is unclear whether the House or Senate version of the long-term NFIP reauthorization will be the vehicle for final action.

The House initially passed its version of a long-term extension in July.

The Senate advanced its version through the Senate Banking Committee in September, but the full chamber has not taken it up yet.

A third option for the NFIP is legislation extending the tax breaks for the middle class and long-term unemployment insurance until Feb. 28 that will include a similar short-term extension of the flood program.

The issue should be decided at the latest by Sunday because Congress wants to go home this weekend for the Christmas-New Year's holiday, the lobbyists explained.

The NFIP is set to lapse today if no action is taken.

Special Reports /

Short-Term NFIP Extension Likely Today; Long-Term Extension ‘In Play’

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