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CBO Says Flood Insurance Reform Bill Will Not Increase Federal Spending

A House bill to overhaul the National Flood Insurance Program (NFIP) would result in no change to government spending over the next decade, according to...
June 14, 2011

A House bill to overhaul the National Flood Insurance Program (NFIP) would result in no change to government spending over the next decade, according to the non-partisan Congressional Budget Office (CBO). The CBO estimated that H.R. 1309 would reduce the program's borrowing from the Treasury by a total of $165 million in 2013 and 2014. But that reduction is likely to be offset by increased borrowing in 2015. As a result, there will be no impact on federal spending over the next decade, the CBO said. Under the bill, the program's net income would grow by $4.2 billion over the next decade, bolstering its finances with new income used to pay existing expenses that would otherwise be delayed.

PIA supports the Flood Insurance Reform Act of 2011 (H.R. 1309), which was passed unanimously by the House Financial Services Committee on May 13 and includes a five-year renewal of the program.

Read more on the CBO NFIP estimate: CBO: Flood Bill Leaves Spending Unchanged (Dow Jones 6/9/11)

Read the CBO Report: CBO Cost Estimate on H.R. 1309 (full report)

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