The Congressional Budget Office says efforts to delay flood-insurance rate hikes—as proposed in a Senate bill under consideration—would add $2.2 billion to the National Flood Insurance Program's debt over 10 years, raising concerns that the bill will run into strong opposition in the House.
Indeed, an industry official says that the CBO score, released Tuesday, is sending supporters of the Senate bill scurrying for legislative language providing an offset for the cost.
"I am not sure why reducing premiums then adding on an assessment makes the end result any more attractive to policyholders, but it's a clue that waiving the budget point of order in the Senate isn't going to be easy," the official says.
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