“Ridiculous” finances course of – legislator speaks out on NFIP

Congress probably will proceed to resume federal flood insurance coverage with short-term funding approvals relatively than reauthorize it for a number of years, Rep. Josh Gottheimer, D-N.J., advised brokers just lately.

Congress prolonged the Nationwide Flood Insurance coverage Program by the top of the federal government fiscal 12 months, Sept. 30, as a part of an appropriations invoice it authorised in March to fund a number of federal companies. The laws ensured the federal government would keep away from a shutdown after lawmakers wrangled for months over spending ranges.

Gottheimer (pictured above) predicted that Congress would once more lurch by a collection of short-term funding payments within the subsequent appropriations course of. That probably would imply a restricted extension for the NFIP relatively than a reauthorization of a number of years that would additionally embody reforms that the Massive I and different insurance coverage commerce associations are searching for.

The razor-thin political margins on Capitol Hill – the place Republicans maintain a 218-213 majority – will stop the compromise required for a long-term finances coverage, Gottheimer mentioned final Thursday on the Impartial Insurance coverage Brokers and Brokers of America Legislative Convention in Washington.

“I don’t suppose that’s going to occur on this Congress,” mentioned Gottheimer, a member of the Home Monetary Companies Committee. “We’re going to maintain doing this punt, which is ridiculous. A number of what we do doesn’t make sense to me, these month-to-month issues.”

Massive I seeks NFIP reform

In a doc given to its members for his or her Capitol Hill conferences, the Massive I advocated for a invoice that will give personal flood insurance coverage a job in assembly “steady protection necessities” and make sure that individuals who go away the NFIP for personal insurers can return to the NFIP with out penalty.

The Massive I “additionally opposes any insurance policies that will…undermine the precious and trusted function that impartial brokers play within the providing, sale and servicing of flood insurance coverage,” the speaking factors state.

The NFIP is prime of thoughts for his constituents, Gottheimer mentioned.

“It’s one of many issues that individuals speak to me rather a lot about at residence,” Gottheimer mentioned. “They’re having hassle getting protection. [They tell him] how tough the system is. So, I feel a few of these reforms would really be actually, actually useful.”

Gottheimer spoke to greater than 600 Massive I members earlier than they set off for talks on Capitol Hill with members of the Home and Senate and congressional workers.