A vote to protect the flood insurance program’s solvency is delayed.
WASHINGTON — House Republicans’ plan to vote this week on legislation seeking to protect the financial solvency of the federal government’s flood insurance program has been delayed.
The holdup is the latest hurdle for a yearslong reform effort that has met resistance from homeowners facing potentially dramatic hikes in their flood insurance premiums.
Last week, House Majority Whip Steve Scalise, R-La., and Rep. Jeb Hensarling, R-Dallas, the powerful chairman of the House Financial Services Committee, announced they had reached agreement on the shape and extent of the reforms. GOP leaders were pushing to bring the bill to vote this week, but two Republican staffers said action had been delayed until next week because of a “technical” issue that arose when several flood insurance reform bills were bundled into one bill.
But Rep. Gene Green, D-Houston, said in an interview Wednesday that concerns over premium increases had some Republicans worried and Scalise did not have the votes to pass the bill. Scalise’s office declined to comment on the delay Wednesday.
The National Flood Insurance Program, which backs more than 95 percent of flood policies in the U.S., was $24.6 billion in debt as of September, a financial situation that has steadily worsened over the past decade through a series of devastating storms and floods.
Last month, President Donald Trump signed a bill forgiving $16 billion of that debt, but expectations within Congress are that the series of hurricanes across Texas and Florida this fall will quickly run the debt back up.
The reforms pushed by Republicans in the House Financial Services Committee seek to stabilize the program by shifting homeowners toward private insurers and raising rates on homeowners whose homes have flooded repeatedly.
A memo from the House Financial Services Committee circulating Monday evening suggested the latest incarnation of the legislation, which was introduced in June by Rep. Sean Duffy, R-Wis., avoided some of the more draconian provisions put forward in past legislation. Annual premium increases would be capped at 15 percent, and the practice of grandfathering, in which insurances rates on older homes are kept below market rates, would be preserved.