“Why Does Extending Flood Insurance Coverage Have to Become a Political Issue?”
Why does Congress always wait until the 99th hour to extend this coverage. Why does this coverage not just become permanent? This has never made any sense to me.
A few years ago, this coverage lapsed and some closings were delayed, which created a lot of hardship for a lot of people. Why was this necessary? What is the possible political gain?
If anyone can tell me what the possible reasons are, I would like to know.
FEMA Urges Congress to Extend Flood Coverage for Two Years
By: Brian Collins
The government's authority to issue new flood insurance policies expires at the end of May and the Federal Emergency Management Administration is urging Congress to pass a two-year extension of the National Flood Insurance Program.
The NFIP has limped along for several years on short-term extensions while Congress continues to work on a reform bill that extends flood coverage for five years.
However, "the short-term reauthorizations and temporary suspensions of the NFIP have eroded confidence in the program among citizens and stakeholders," said FEMA administrator Craig Fugate in a recent letter to House and Senate banking committee leaders.
"A two-year reauthorization will send a clear signal to citizens, communities, and private sector partners that the federal government will continue to support our nation's efforts to manage flood risk," Fugate notes.
The House of Representatives passed a five-year NFIP reform bill by a 406-22 vote in July 2011. The Senate Banking Committee approved a similar bi-partisan reform bill last September. But the full Senate has yet to act on the measure.
During a bitter budget battlement in 2010, Congress allowed the flood insurance program to lapse four times for a total of 53 days.
Such disruptions make it less likely communities will make investments to reduce flood risk and undermines NFIP's effectiveness over time, the FEMA letter says.
Since 2010, Congress has passed several short-term extensions, including the current five-month extension that expires May 31.
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Joe Petrowsky, NMLS #6869
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Joe,WOW!!!!!!!!!!!!!!!!! This is some good Info for all,keep up the good work and good luck with your business in 2012, E
Gets back to the budget - -- WAIT!!! There is no budget.
As long as continuing resolutions give Congress a way of avoiding the public knowing just what they are spending and for what, they'll continue sweeping important services and legislation to pay for it under the rug.
Continuing resolutions are just funded, they aren't paid for.
To pay for something, they would either have to add it in a line item in the budget, WAIT! There isn't a budget.
One side would, no doubt, demand an offset of something else to pay for it.
Of course, if a well funded lobbiest for the insurance industry started a SUPER PAC to spread some cash around to the outstretched palms of the Congressmembers, it would get done.
Funny how that works out.
Excuse my cinicism Joe, I'm a cinic.
Hello Joe,
I certainly can't say it any better than Lenn has...it's just another game, and we are the pawns. No budget, no problem...more taxes to those that pay them - that's the Washington Way!
Joe: Flood insurance, the tax break for short sales in the Home Mortgage Relief Act, employment tax credits... It seems like there are a lot of common sense matters up for renewal quite often. As far as I can tell, they provide an excuse to the political parties to exert leverage, cut deals and/or add "pork" to bills. Cynicism on my part, I admit, but it seems like these should be passed via rubber-stamp to allow politicians time to address weightier issues.
Joe,
I agree, it doesn't make sense.
Can't explain it.
Thanks.
Kevin