Flood Plan Renewal Still In The Works, Sources Say

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

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

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

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

The crisis for the NFIP was prompted by the collapse of negotiations on bipartisan jobs legislation late last week, which had included flood insurance program renewal as one of its many provisions.

Drafted by the Senate Finance Committee leadership, the measure was killed Friday by Senate Majority Leader Harry Reid, D-Nev., who said he feared Democrats would be criticized for passing a jobs creation bill stuffed with business tax breaks and provisions benefitting special interests.

That bill contained a provision extending the NFIP until May 31.

The Hiring Incentives to Restore Employment Act (HIRE) was introduced as a result of talks earlier in the week between representatives of the congressional Republican leadership and President Barack Obama.

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

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

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

Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, indicated last week that he would seek another temporary reauthorization of the program.