As lawmakers head into the Memorial Day recess, they are leaving behind some unfinished business. The latest extension of the beleaguered National Flood Insurance Program (NFIP) is due to expire on 12:01 am, June 1.
The NFIP has limped along on a series on temporary extensions as lawmakers have been unable to craft a lasting concordance on the program. Lawmakers from coastal areas would prefer from a multi-peril program that includes coverage for wind damage, while the insurance industry has countered that such an inclusion would drive private insurers from the market. The NFIP is also debt-laden. A 2008 report by the U.S. Government Accountability Office (GAO) concluded that the NFIP owes the U.S. Treasury $17 billion and is ill equipped to meet losses in the event of a future catastrophe.
"This is now the fourth time Congress will have let this program lapse and it’s beginning to feel like Groundhog’s Day,” Blain Rethmeier, spokesman for the American Insurance Association, said in a statement. “The country has seen record flooding this spring. Congress needs to pass a long-term extension because homeowners living in flood prone regions of the country don’t have anywhere to turn should another major flood occur during this Congressional recess."
