On Tuesday September 23, the House of Representatives passed a seven-month extension (H.R. 6965) in authorization for the National Flood Insurance Program. The extension was introduced by Financial Services Committee Chairman Barney Frank (D-Mass.). This week, both Frank and Senate Banking Committee Chairman Chris Dodd (D-Conn.) indicated that Congress will extend the program through April 30, 2009. NFIP authorization is set to expire on September 30.

The House and Senate have been working on a five-year reauthorization (HR 3121) of the program for months. But even before the current Wall Street crisis hit, the bill had been sidelined in July while Dodd and Frank worked on a major housing bill.

Last week, Frank offered legislation to extend the program for seven months to allow time for the new administration to iron out differences between the two chambers’ versions and act before the 2009 hurricane season. Lawmakers originally had wanted to beat this year’s hurricane season.

The House passed the comprehensive reform bill almost a year ago, and the Senate acted on its version in May. The Senate version of the bill would forgive the program’s $17.5 billion debt without offsetting that cost, as required under the rules, but the House version would not do so. The House version would expand the program to allow optional insurance against wind damage. PIA has been lobbying in support of the seven-month extension bill. On the comprehensive reform bills, PIA supports debt forgiveness but opposes the wind provision.

Flood Insurance Extension Expected  (New Orleans Times Picayune 9/24/08)

September 26, 2008