House Approves another Temporary Flood Insurance Extension

The House approved a short-term, 60-day extension of the National Flood Insurance Program yesterday, keeping the program alive and setting the stage for continued debate over reform this summer. The bill was approved by a voice vote. The Senate plans to debate a five-year reauthorization and reform bill over the coming months.  The National Flood Insurance Program provides government-subsidized insurance through the Federal Emergency Management Agency in flood-prone regions. Currently, it is nearly $18 billion in debt from 2005 Gulf Coast hurricanes Katrina and Rita. Congress has tried unsuccessfully to overhaul the program since 2003, and have relied on a series of short-term extensions to keep the program running since 2008.  But things are becoming more serious. The current short-term extension eliminates subsidies for flood insurance coverage on vacation and other second homes.  The long-term authorization is expected to consider premium increases and phasing out subsidies on repetitive loss properties, and updating flood mapping. For more information, please contact Jeff Shoaf at (202) 547-3350 or shoafj@agc.org.