Bill Would Reform Flood Program

Rep. Barney Frank, D-Mass., is calling on Congress to pass a bill that would reform the National Flood Insurance Program instead of just extending the program for another year.The House Financial Services Committee has approved a NFIP reform bill (H.R. 253) that would reduce the cost of repetitive claims by charging higher premiums on loss-prone properties. But Rep. Billy Tauzin, R-La., who chairs of the House Energy and Commerce Committee, has raised objections to the bill and it now appears to be stalled. "I would be fiscally unwise and environmentally irresponsible to pass a long-term extension to the current program instead of revamping it," Rep. Frank said. The Senate has passed a bill to extend the NFIP for another year. Last year, the House failed to extend the NFIP and the Federal Emergency Management Agency could not issue new flood insurance policies or renew existing policies after Dec. 31. Congress had to return in early January to pass a bill to restart the program.