Program critical to Gulf Coast economy is set to lapse this month
With the National Flood Insurance Program set to expire Dec. 18, the Senate voted for legislation Wednesday that would extend it through May 31.
Sen. David Vitter, R-La., who sponsored the measure, said he is hopeful the House will approve the measure soon and that Congress will pass a bill next year extending the program for a full five years, giving it more stability.
The six-month extension passed by a voice vote, reflecting enough bipartisan support to avoid a repeat of 2010, when the program's authorization lapsed four times.
"I'm glad that my Senate colleagues agreed with me that the National Flood Insurance Program is too important for us to allow it to lapse again," Vitter said. "Last year, the program expired four times for a total of 53 days, causing lost real estate closing and further economic pain for residents of flood-prone areas."
Sen. Mary Landrieu, D-La., a co-sponsor of the measure said, "Expiration of the National Flood Insurance Program would have caused harmful and unnecessary delays in home sales throughout the Gulf Coast -- that is why this extension is critical."
During lapses in its congressional authorization, current flood insurance programs remain in effect, but new policies can't be issued.
The program is administered by the Federal Emergency Management Agency.
Still, some lawmakers were disappointed Congress once again failed to enact a long-term extension, including changes designed to make the program more actuarially sound.
A bill that cleared the House earlier this year, and a separate measure that passed the Senate, would have allowed a bigger rise in premiums than the current maximum increase of 10 percent per year to help put the program, now in debt for more than $18 billion, in better financial shape. Most of those losses occurred after Hurricanes Katrina and Rita in 2005.
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Bruce Alpert can be reached at balpert@timespicayune.com or 202.450.1406.