According to Jim Abrams at the Associated Press, the Senate agreed today to extend the National Flood Insurance Program for another five years, writing off the $17 billion debt incurred by FEMA after the many hurricanes in 2005, including Katrina. In an effort to help the program's finances, the Senate's bill will also increase premiums and reduce subsidies.
Of course, nothing is final yet. It's off to the House of Representatives next, but they passed legislation much like it last September, so it's not expected to run up against any problems. Plus, the 2008 hurricane season is coming quickly, so there's plenty of incentive to rush the bill through and get it onto George W.'s desk as quickly as possible.
However, the White House has a few caveats. They said that any bill including wind coverage would be vetoed by the president. They also said that "shifting liabilities for windstorm damage from the private sector to the NFIP would be fiscally irresponsible."
The bill would also require those who live on property protected by levees or dams to purchase flood insurance and that FEMA to adjust flood insurance rates to accurately reflect the risk of the region.
What do you think of the potential of this bill?
Founder and Chief Executive Officer
Vice President of Marketing and Business Development
Public Relations Manager