Program covers 5.5 million homes and businesses, including more than 500,000 in Louisiana
The House passed legislation Thursday that extends the federal flood insurance program for another year.
View full sizeHurricane Katrina flooding near the University of New Orleans was photographed Sept. 9, 2005. The bill, which cleared the Senate on Tuesday, now goes to President Barack Obama for his expected signature. House approval came on a voice vote.
Without congressional action, the program, which covers 5.5 million homes and businesses, including more than 500,000 in Louisiana, would have lapsed Sept. 30 for the third time this year.
When congressional authorization expires, new policies can't be issued and new renewal applications can't be processed, putting holds on home sale closings in flood-prone communities.
The one-year extension legislation was introduced by Sen. David Vitter, R-La., after a five-year extension approved by the House stalled in the Senate. Vitter said he would have preferred a longer extension, but with Congress recessing soon for the mid-term elections, it was important to ensure the program didn't lapse again.
Rep. Charlie Melancon, D-Napoleonville, Vitter's opponent in the Nov. 2 Senate race, expressed relief the bill is now on the way to President Obama.
"The flood insurance program provides security and peace of mind for over half a million Louisiana families and small businesses," Melancon said. "While I am disappointed the Senate failed to act on the five-year extension we passed in the House several months ago, this short-term extension at least removes the immediate threat of the program expiring on September 30th."
Reps. Anh "Joseph" Cao, R-New Orleans, and Steve Scalise, R-Jefferson, said the extension is critical to a hurricane-prone area like New Orleans.
"Louisiana homeowners should not be left in limbo while Congress recklessly allows the program to expire over and over," Scalise said.
But Scalise and others were disappointed the bare-bones extension didn't include provisions from the House-passed bill, including one that would have increased the maximum coverage limits from $250,000 to $335,000.
The bill also doesn't include any provisions designed to reduce the program's debts, which grew to more than $18 billion after hurricanes Katrina and Rita in 2005. The bill passed earlier by the House would have allowed premium increases of up to 20 percent a year, instead of the current limit of 10 percent. Critics said it should have gone even further in increasing premiums for those who file frequent claims.
According to the Government Accountability Office, the investigatory arm of Congress, 1 percent of policy holders are responsible for 25 percent to 30 percent of claims.
Bruce Alpert can be reached at balpert@timespicayune.com or 202.383.7861.