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May 23, 2012

Reid, Vitter pave way for NFIP action

May 24, 2012 – The Senate appears poised to approve a short-term extension this week for the National Flood Insurance Program and is expected to come back after the Memorial Day recess to take up action on a five-year reauthorization measure, NAFCU lobbyists said yesterday.

NAFCU is urging action on a long-term bill to ease long-running concerns by lenders and homeowners about whether the NFIP is headed for another lapse.

The NFIP is set to expire May 31 under its latest short-term extension. The House passed a short-term extension, H.R. 5740, last week that would keep the program going through June 30, but the Senate has been slow to follow suit. Meanwhile, both chambers are in recess all of next week.

Although Senate Majority Leader Harry Reid, D-Nev., has seemed willing to move on a long-term authorization, he has been reluctant to press for more than a short-term fix due to concerns it would be bogged down by amendments. Sen. David Vitter, R-La., however, has held up action on a Food and Drug Administration bill by pressing for inclusion of an amendment to reform and extend the NFIP.

The two came to an agreement Wednesday that would allow both measures to go forward: Vitter will withdraw his NFIP amendment to the FDA bill, allowing that package to move forward, and Reid will allow action on a long-term NFIP measure during the next "work session," which follows the Memorial Day recess.

If the Senate does pass a short-term bill, it might have to be ironed out with the House-passed measure, which also requires regulators to allow the use of private coverage if it satisfies federal program requirements. The House bill also calls for studies on privatization and voluntary options.