With the help of Florida’s two US senators today the Senate passed legislation to delay massive rate hikes in flood insurance plans for thousands of people living along the coast.
A bipartisan group of 67 lawmakers helped pass the flood insurance legislation. Thousands of people living in coastal areas who are at risk of flooding were reporting sticker shock as new insurance plans were sent out. The new rates represented a two, three, and in some cases a tenfold increase. The legislation requires FEMA to do an affordability study on its new flood map, which effectively delays the rate hikes for four years. Florida Democratic Senator Bill Nelson says these rate hikes are disastrous.“That’s hurting a lot of people and it’s hurting our economic recovery just at the moment in which the real estate market is coming back all along the coast of America as well as along the rivers and lakes – the very places that flood insurance is necessary for a homeowner or a business”, Nelson said.
The bill still faces hurdles though. The White House opposes the Senate bill because the flood insurance program remains saddled in debt from Hurricane Katrina. But Administration officials didn't actually threaten to veto the bill. The legislation now goes to the House where Speaker Boehner and tea party backed conservatives also oppose the legislation.