Sen. David Vitter, R-La., is trying to force the Senate to quickly pass a five-year reauthorization of the flood insurance program this week.
The Federal Emergency Management Agency’s authority to issue new flood insurance policies expires May 31 and many lawmakers and industry supporters are frustrated that the Senate has not managed to pass a reauthorization bill that enjoys bipartisan support.
The Louisiana senator plans to attach the flood bill to another noncontroversial bill slated for Senate action. It might be the Food and Drug Administration fee reauthorization bill or a small business tax bill.
“I’m hoping we can get bipartisan cooperation to push this forward,” Vitter said at a Senate Banking Committee hearing Wednesday morning.
Last September, the Senate Banking Committee unanimously passed a bill to reform and extend the National Flood Insurance Program for five years.
The bill phases out subsidized insurance rates for second and vacation homes and requires lenders to escrow flood insurance payments for all properties located in flood zones. The House passed a similar five-year reauthorization bill last summer.
Many industry groups hope Vitter succeeds, including the National Association of Realtors.
Since 2008, Congress has passed 17 short-term extensions. FEMA’s authority to issue flood insurance has lapsed several times, according to NAR president Moe Veissi. “This is not a responsible way to run the program, especially since 5.6 million homes and business owners in 21,000 communities rely on it,” he told the Senate panel.
