(UPDATE April 16, 2010: Two days after the blog posting below was written, Congress authorized an extension of NFIP until May 31, but only as part of other unrelated legislation. Groups continue to state that Congress should extend NFIP for a longer and more responsible period of time.)
Can Congress get any more irresponsible? (For the moment, let’s suspend the health reform law debate…)
In March, the National Flood Insurance Program expired, and now IFAwebnews.com reports that Congress is being urged to extend the NFIP to ensure coverage for new homeowners and those at risk who need coverage.
The problem is that language to extend NFIP is wrapped up in the unemployment benefits extension bill, which is being hotly contested by Republicans, who say that it is unwise to add $9 billion to the federal government’s $1.4 billion budget deficit.
All of this means that new homeowners, and those who are attempting to purchase new homes, cannot buy flood insurance. That means that many home sales are being stalled, and during a recession that was caused in large part by a mortgage crisis, any hindrance to home sales could have dire consequences for an economy that some say is showing signs of a recovery.
It also puts Congress squarely at the poker table, betting that between the time the bill expired last month and when it is finally extended, that no disasters or floods will occur and create claims by those uninsured by Congress’s lack of action. Sure, the bill will be retroactive and homeowners will eventually be covered, but it also involves disaster aid and working through a cumbersome system when the easy way is simply to have the coverage in first place.
Making the extension part of another completely unrelated piece of legislation is dangerous and foolhardy. But operating in this manner is de facto for Congress, and ultimately the American public pays the price.
While it is expected that the bill might pass this week, it should have been a stand-alone piece of legislation that was reviewed and passed weeks –if not months — ago.
If the unemployment benefits bill isn’t passed — and NFIP is for the third time left without a mandate — perhaps someone in Congress will be the adult in the room, submit NFIP legislation, push for its passage, and save Americans more headache.
Congress gambles by allowing flood insurance program to languish via IFAwebnews .