R Street concerned by proposal to delay flood insurance reform
Senate Amendment 802, sponsored by Sens. Mary Landrieu, D-La., and David Vitter, R-La., would delay the process of phasing out NFIP premium subsidies for second homes, business properties and frequently flooded properties, as called for in the Biggert-Waters Flood Insurance Reform Act passed by Congress last year.
“The NFIP has been offering flood insurance at below-risk rates for 45 years, in the process racking up some $30 billion in debt to the federal Treasury,” R Street Senior Fellow R.J. Lehmann said. “Congress finally acted last year to end the most egregious subsidies, but still preserved them for most primary residences. These reforms are modest, fair and were subjected to years of debate before they were signed into law. There is no call to slow or reverse that process now.”
The delay was proposed as an amendment to S. 601, sponsored by Sen. Barbara Boxer, D-Calif. R Street has separately joined with Taxpayers for Common Sense and other free-market and taxpayer groups to raise concerns about existing provisions of the earmark-laden bill, which would extend wasteful beach replenishment projects and could easily cost taxpayers double the $12 billion price tag estimated by the Congressional Budget Office.