S. 3814: National Flood Insurance Program Reextension Act of 2010

S. 3814

National Flood Insurance Program Reextension Act of 2010

Sen. David Vitter

September 23, 2010 (111th Congress, 2nd Session)

Staff Contact

Floor Situation

The House is expected to consider S. 3814 on the House floor on Thursday, September 23, 2010, under a motion to suspend the rules, requiring a two-thirds majority vote for passage.  This legislation was introduced by Sen. David Vitter (R-LA) on Septemer 21, 2010, and passed in the Senate by unanimous consent.

Bill Summary

S. 3814 would provide a temporary extension of the National Flood Insurance Program through September 30, 2011.


The NFIP, the largest single-line property insurer in the nation, provides coverage for more than five million properties.  Homeowners, renters and other businesses across the country are required to purchase flood insurance coverage through participating insurance agents and companies.  The companies receive an expense allowance for policies written and claims processed.  The agents earn a commission for policies sold and serviced, and the federal government retains responsibility for underwriting losses and paying claims.  The NFIP is currently operating on a shot-term extension through September 30, 2010.

When the NFIP’s losses exceed premiums, FEMA is authorized to borrow for the U.S. Treasury.  The NFIP is currently facing financial challenges.  The GAO has included the NFIP on its annual list of high-risk government programs since 2006 because of its ongoing potential to incur billions of dollars in losses.  With an $18.75 billion debt to the Treasury and the persistence of subsidized premium rates for properties in high-risk areas, the NFIP continues to be underfunded and federal taxpayers remain at risk. 

The Flood Insurance Reform Priorities Act of 2010, H.R. 5114, was approved by the House on July 15, 2010 by recorded vote of 329-90 and remains under consideration in the Senate.