One lingering consequence of Hurricane Katrina is evident in the state of limbo in which the National Flood Insurance Program currently resides. In March, lawmakers approved another temporary extension of the program, again sidestepping the contentious issue of whether to include coverage for wind damage in the program.

Now, according to Reuters, the Obama administration has weighed in on the debate. Reuters reports that House Financial Services Committee Chairman Barney Frank (D-Mass.) received a letter from Department of Homeland Security Secretary Janet Napolitano indicating the administration opposes expansion of the NFIP to include wind coverage.

Opponents of expanding the program were encouraged by the news.

"We are very pleased that the Obama Administration has reviewed this issue carefully, and arrived at the same conclusion that PCI has held from the start: Adding wind coverage to the NFIP is unworkable and unnecessary,” David Sampson, president and CEO of the Property Casualty Insurers Association of America said in a statement. “The administration has taken the right position and demonstrated a thorough understanding of this vital issue. It has articulated a proper balance between concern for taxpayer dollars and maintaining the private marketplace, while ensuring consumers have choice and availability.”

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