The House Financial Services Committee voted last week to approve legislation that would increase the borrowing authority for the National Flood Insurance Program, as well as implement several reforms.
The committee passed the bill by a voice vote of 44-to-10 after rejecting a proposed amendment by Rep. Jeb Hensearling, R-Texas, which would have immediately ended the subsidized rates paid for flood coverage by homeowners whose property predates the Flood Insurance Rate Maps. The current bill only eliminates the subsidies for nonprimary residences and vacation homes over time.
In debating the amendment, Rep. Richard Baker, R-La., said that gradually eliminating the subsidies in the future “might be something I could understand as defensible,” but he was unable to support anything that would put a greater, more immediate burden on homeowners hit by Hurricane Katrina. “The underlying bill is already a big jump for me,” he said.
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