House passes $19B disaster relief bill with 4-month NFIP extension

After months of political battles, the U.S. House of Representatives passed a $19 billion disaster relief bill (H.R. 2157) late Monday night, providing aid to areas hit by hurricanes, flooding, tornadoes, wildfires and other natural disasters in recent months.


The disaster relief bill also includes a 4-month extension to the National Flood Insurance Program (NFIP), finally providing some extended security to the program, which has seen 12 short-term extensions since its original expiration date in September 2017.

The bill passed the House with a vote of 354-58. The Senate previously passed the bill on May 23. It now goes to the White House. President Donald Trump has indicated he will sign the bill.

The $19 billion will fund a number of federal programs that provide aid and rebuilding assistance to local communities, farmers, service members and others nationwide.

Breaking down the $19 billion, $900 million has been allocated for aid in Puerto Rico, where Cat-5 Hurricane Maria devastated the U.S. territory in 2017, killing an estimated 3,057 people. The bill also will aid flood victims in the Midwest, particularly farmers who are being stifled by months of relentless inclement weather and fallout from the President’s recent trade tariffs.

Wildfire victims and programs in California will see long-awaited relief, too. The bill contains $2.4 billion for community development block grants to address disasters that have occurred since 2017; $3 billion for the Agriculture Department to cover producers’ losses from those disasters; and $720 million for the Forest Service to repay money spent fighting last year’s wildfires.

NFIP extended through September 30

Congress failed to extend the NFIP on three recent occasions before passing a two-week extension on May 30, avoiding a lapse in the program hours before its expiration.

The National Association of Professional Insurance Agents (PIA National) is asking Congress to take time before Sept. 30th to provide a long-term reauthorization of the NFIP.

PIA National says any reauthorization of the NFIP should include reforms to the program. PIA National has recommended reforms in meetings and written testimony.

“It is fortunate that we avoided a lapse in the flood insurance program, albeit again at the last minute,” Jon Gentile, vice president of government relations for PIA National said in a statement. “Last week’s political showmanship needlessly delayed funds for disaster-stricken areas and almost led to the NFIP lapsing at the beginning of hurricane season.”

Noting that this is the 12th short-term extension of the NFIP since its original expiration date in September 2017, Gentile added that short term extensions only produce uncertainty for consumers, the insurance industry and real estate markets.

“Congress must get serious and pass a long-term reauthorization that has a chance of passing both chambers, and that also recognizes the key role independent insurance agents play in delivering this important program to homeowners and business owners,” Gentile said. “The time for endless delays is over. It’s time to act.”

Source: Danielle Ling of PropertyCasualty360