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May 30, 2012 – The House is poised to take final action today on a two-month extension of the National Flood Insurance Program, which is currently set to expire at midnight Thursday.

The bill, H.R. 5740, was passed by the full Senate last week following one amendment: a gradual phase-out of the subsidy for NFIP premiums covering second or vacation homes. The House has the bill on today's suspension calendar.

NAFCU is urging action on a long-term authorization of the program so lenders and homeowners can stop worrying about when the next program lapse will occur.

The Senate approved H.R. 5740 after including an amendment sought by Sen. Tom Coburn, R-Okla., to phase out NFIP premium subsidies for all but the homeowner's primary residence beginning with premiums due this July.

The House bill, introduced by Rep. Judy Biggert, R-Ill., would also require federal agencies and the government-sponsored enterprises to allow the use of private flood insurance if it satisfied the federal program requirements. It also calls for studies on privatization and voluntary options.

Both the House and Senate have their own versions of a five-year extension, each providing for reforms of the NFIP. The House cleared its bill, H.R. 1309, last July, but the Senate has yet to act on S. 1940, introduced by Senate Banking Chairman Tim Johnson, D-S.D. S. 1940 is on the Senate calendar. Senate Majority Leader Harry Reid, D-Nev., has promised there will be a vote on a long-term bill.