Senate OKs flood insurance reauthorization
Short-term extension will give lawmakers time to overhaul program.
The Senate cleared legislation Wednesday night that extends the National Flood Insurance Program through September, providing another short-term reauthorization to get through hurricane season and give lawmakers more time to revamp the program.
Lawmakers have struggled for four years to settle on a long-term reauthorization of the program, which has about a $19 billion deficit as a result of claims from 2005 hurricanes that struck the Gulf Coast. Congress has settled on a batch of short-terms extensions to give lawmakers more time to work out a compromise.
The latest extension would have the program apply retroactively to May 31, when the last extension expired.
Both chambers have passed extensions during the last Congress that would allow the program to charge higher rates on second-homes and rental units in an attempt to make it more actuarially sound. But the Senate bill is much more restrictive than the House measure, which would increase coverage limits and allow coverage for business interruption purposes.
The Senate measure also would forgive the program's debt. It serves 5.5 million households, with private insurers writing the flood policies and the federal government backing up the claims.