Senate Inches Toward Extending Flood Insurance

WASHINGTON – NU Online News Service–The Senate has voted to limit debate on a multi-faceted bill including an extension of the National Flood Insurance Program through April 30, while talks continue on giving the program a longer life.

Its action Monday night sets up a probable Thursday vote on the short extension. In addition to the flood program, a key item in the Continuing Extension Act of 2010 is a continuation of unemployment benefits. By a vote of 60-34, the Senate closed off debate on the motion to proceed to H.R. 4851, the short-term extension bill.

That bill includes a provision extending the NFIP through April 30th. Authorization of the program lapsed March 28.

Last night's vote limits debate on the bill to a maximum of 30 hours before consideration of amendments. The lead opponent of the extension bill is Sen. Tom Coburn, R-Okla., who has objected to the measure on the grounds it will expand the nation's deficit unless its costs have been offset with provisions generating revenues to pay for the bill.

Also included in the legislation is a pay increase for doctors serving Medicare patients.

Opponents of the measure are expected to extend the debate for the full 30 hours, meaning there is a chance a vote on the underlying bill won't take place until Thursday.

At the same time, negotiators for the Senate and House are having difficulty reconciling differences on H.R. 4213, the so-called tax "extenders" bill, because of the same "pay-for" issue. That measure extends the NFIP Dec. 31.

Adding to the confusion is word that a subcommittee of the House Financial Services Committee plans an April 21 hearing on the NFIP extension issue, followed the next day by action on legislation that would reform the program and extend it for five years.

Seeking to add urgency to the situation, a coalition of insurance groups, homebuilders and mortgage bankers sent a letter to Congress Friday noting the importance of the program.

The letter said that if Congress fails to reauthorize the NFIP, the program will still be paying for post-disaster relief for flood victims, yet it will be unable to collect premiums for renewing current flood insurance policies, which amounts to $2.85 billion annually.

"Devastating storms in the northeast underscore the need for Congressional action to reauthorize the NFIP immediately," the letter said. "Failure to reauthorize the NFIP expeditiously when Congress returns will severely harm real estate markets, putting consumers at risk of uninsured losses and potentially putting additional tax money at risk to cover relief efforts," the industry group's message warned.