WASHINGTON—The Senate passed legislation Friday nightthat includes a provision to increase the borrowingauthority of the National Flood Insurance Program by one-third.

The increase is part of the Hurricane Sandy Emergency AssistanceSupplemental legislation that passed 62-32, the fifth time Congressworked post-Christmas since the 1930s.

The bill faces an uncertain future in the House. Its fate istied to the ability of the Senate leadership to craft a bill thatthe House will accept to avert the so-called "fiscalcliff."

The NFIP bill passed the Senate against the backgroundof an advisory issued by the Federal Emergency Management Agencyearlier in the day to write-your-own insurers indicating that theNFIP will run out of money to pay claims from SuperstormSandy within two weeks.

"This critical package will help the residents of themid-Atlantic and northeastern states recover from the devastationwrought by Hurricane Sandy," says Senate Majority Leader HarryReid, D-Nev.

"State and federal authorities have worked together effectivelyto help the victims, but more help is needed for the recovery tocontinue," he adds. "This bill provides those additionalresources."

Reid says the House should act immediately in order for Congressto "continue its long-standing tradition of helping our fellowAmericans in the aftermath of a natural disaster."

One impediment to final passage of the Hurricane Sandy emergencyassistance package is that conservative House Republicans see the$60.4 billion measure as overkill, going beyond helping states hithard by Sandy and allowing them to upgrade theirinfrastructure.

"Before we release another round of federal dollars, let's haveall the information we need to make the best possible decision,"says Jennifer Hing, a spokeswoman for Rep. Hal Rogers, R-Ken.,chairman of the House Appropriations Committee "Congress hasalready approved $7.1 billion, and FEMA has not indicated that moreis needed at this point."

Concerning the NFIP, the program has $20.775 billion in existingborrowing authority. The bill passed Friday night would raise NFIPborrowing authority by a third, to $30.4 billion.

The bill was passed hours after President Obama told the nationthat "the hour for immediate action is here" on a deal to avert thefiscal cliff that would sharply increase  taxes and makedeep cuts in federal spending, and threnthen to plunge the U.S.economy into recession.

Friday evening members of the congressional leadership emergedfrom talks with President Obama saying that compromise to avoid thefiscal cliff  is possible. Part of the deal currentlybeing negotiated by the Senate leadership would allow the currentestate tax levels to remain the same, a key issue for insuranceagents.

The expectation, say insurance industry officals, that the Sandyaid package, including an increase in FEMA borrowing authority,would be tucked into the fiscal cliff deal.Those officials acknowledge that it faces long odds ofpassage in the House in its current form. However, giventhat the Senate is drafting compromise legislation that wouldlikely include the Sandy aid package, House officials might beforced to accept it on a "take it or leave it" basis.

Sen. Charles Schumer, D-N.Y., is said to be playing a key rolein shepherding the $60.4 billion Sandy aid package through theSenate—and, hopefully through a reluctant House.

President Obama, speaking Friday after meeting with theCongressional leadership, says both the House and Senate shouldallow a vote on basic items, including provisions preserving taxcuts for middle-class Americans while extending unemploymentbenefits for the long-term jobless and working toward a foundationfor a broader deal.

After the White House meeting, Reid issued a statement callingit "productive," adding that he is hopeful that Congress will beable to avoid the fiscal cliff.

"At President Obama's request, I am readying a bill for a voteby Monday that will prevent a tax hike on middle-class familiesmaking up to $250,000, and that will include the additional,critical provisions outlined by President Obama."

He adds that, "In the next twenty-four hours, I look forward tohearing any good-faith proposals [Senate Minority Leader Mitch]McConnell [R-Ky.] has for altering this bill."