Flood insurance wrangling intensifies in Senate

With the National Flood Insurance Program (NFIP) set to expire this month, Senate Republicans and Democrats are skirmishing behind closed doors over whether to ram a long-term reform bill through the floor or settle for a short-term measure that punts major decisions to a later date.

Democrats say they prefer a long-term bill, but have not brought it to the floor. Sen. David Vitter (R-La.) said Wednesday he would offer a five-year reform bill as an amendment to whatever legislation is next considered by the Senate to force the issue. 

“Whatever comes up next,” Vitter said. 

The problem, aides say, is that Senate Majority Leader Harry Reid (D-Nev.) may fill the amendment tree on the next bill to block Vitter from making his move.

To counter this, Republicans are playing their own strong card—they are refusing to give unanimous consent to pass a short-term bill simply extending the NFIP through December 2012. Democrats have already given unanimous consent to the shorter-term bill.

They have sponsored a short-term bill but also realize that this month’s deadline pressure may help them get the long-term reform they prefer. 

Tester told The Hill that he supports this Vitter strategy even though he prefers taking up an NFIP bill as a stand-alone measure.

“I would prefer to take it up separately ... but any way that we can do it,” he said. 

Aides say the situation is fluid and is being influenced by a major lobbying effort this week by insurance companies, realtors and environmentalists seeking passage of a long-term bill. 

That bill would solidify NFIP’s finances, reduce uncertainty, and increase maximum coverage limits, supporters argue.

National Association of Realtors President Moe Veissi told a Senate Banking hearing on NFIP Wednesday that failure to pass a long-term bill is hurting the housing market and stalling the economic recovery. He said up to 13,000 real estate transactions would be blocked per day if NFIP lapses.