Senate Banking Subcommittee on Economic Policy Chairman Jon Tester (D-MT) said a long-term extension of the National Flood Insurance Program was “imperative.” Senators Tester and Vitter (R-LA) support bi-partisan legislation which allows a five-year extension, an insurance rate increase up to 15%, instead of the current 10% a year and forgives $18 billion in debts for the federal program, most from large payouts after Hurricane Katrina and Rita in 2005.
Witnesses included representatives from insurance companies, real estate and environmental advocacy groups. The National Flood Insurance Program expires at the end of the month on May 31st.