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June 21, 2012 – A procedural vote to set the stage for Senate action on a five-year authorization of the National Flood Insurance Program – action long sought by NAFCU – could occur as early as this afternoon, NAFCU lobbyists said.

NAFCU is advocating strongly for action on a long-term authorization of the program so lenders and homeowners can stop worrying about when the next program lapse will occur and to help promote stability in the housing market. The NFIP is working under a temporary extension that expires July 31.

Senate Majority Leader Harry Reid, D-Nev., has scheduled a vote on a motion for cloture Friday, but action could come earlier. The motion needs 60 affirmative votes to clear. Presuming that happens, the Senate could take up consideration of the bill at any time.

The Senate bill, S. 1940, would reauthorize the NFIP through Sept. 30, 2016. The House has passed its own version, H.R. 1309. Both measures include program reforms.

The short-term extension in effect now also requires a gradual phase-out of federal subsidies for flood insurance premiums covering loans on non-primary residences. That provision could remain intact, or it could be removed or modified when a House-Senate conference convenes to iron out differences between the two bills.

The Senate is expected to vote on cloture after it finishes work on the farm bill.