Congress Poised to Extend Flawed Flood Insurance Program

Congress Poised to Extend Flawed Flood Insurance Program

February 24, 2009

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Congress
Poisedto Extend Flawed Flood Insurance Program

 

Real Reform Still Needed

 

Washington,
D.C., February 24, 2009—Congress will
extend the National Flood Insurance Program through September 30, 2009, as part
of the Omnibus Appropriations Bill.

In 2008, both House and Senate passed legislation that would
have reformed the program. Both House and Senate bills expanded property
mitigation efforts and raised rates for properties highly likely to have claims
but differed in several other major aspects. The Senate voted to forgive the
program’s debt—a step necessary to stabilize its finances—while the House did
not. The House-passed legislation would have enormously expanded the program’s
size by adding wind coverage to the program. Similar wind proposals failed
overwhelmingly in the Senate and the two chambers never resolved their
differences.

“Given the current economic crisis, it’s not surprising that
Congress has decided to punt on this issue,” said CEI Senior Fellow Eli Lehrer.
“But I am still disappointed. This simply puts off the absolutely necessary
action of changing the program in a fundamental way, reforming it, and making America
safer.”

Read more on flood insurance reform: