The House Financial Services Committee has approved a five-year extension of the National Flood Insurance Program by unanimous vote.
The committee voted 54-0 to approve the Flood Insurance Reform bill (H.R 1309), which will reduce existing subsidies on insurance rates for most properties in flood plains.
Rates could be hiked by 10% to 20% a year until they reach actuarially sound levels.
"The NFIP is facing serious financial challenges," said committee chairman Spencer Bachus, R-Ala., and "reforms are needed to eliminate or phase out the subsidies as quickly as possible."
The House of Representatives might take up the measure soon and possibly pass it before Memorial Day.
The current authorization for the NFIP expires at the end of September.
The Senate has not acted on a flood insurance extension bill yet.
