House-Senate GOP Dispute Threatens Flood Insurance Hike.

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Author: Cohn, Peter

Finance

A spat between House and Senate Republicans could be brewing over legislation to increase the Federal Emergency Management Agency's borrowing authority to cover expenses of the National Flood Insurance Program. Scheduled for consideration on today's House suspension calendar, the measure has White House support but conservatives are demanding it be accompanied by financial controls on FEMA. That legislation is moving separately in the House Financial Services and Senate Banking committees, and the House bill up for a vote today would simply lift the borrowing cap from $3.5 billion to $8.5 billion, as requested by the White House. CBO has scored the bill as increasing FY06 spending by $5 billion, and the bill neither contains offsets nor carries an emergency designation.

The Senate has made no guarantees about bringing up the House-passed bill before adjourning for Thanksgiving, and there are indications that Senate Banking Chairman Shelby would prefer to include more restrictions on the flood insurance program. House conservatives also are raising concerns, which could jeopardize House passage under suspension of the rules, which requires two-thirds of those present and voting for passage. The flood insurance bill is backed by Pennsylvania lawmakers whose districts are subject to flooding from the Delaware River, as well as Gulf Coast and Florida members whose districts have been ravaged by hurricane-related flooding. Republican leaders want to pass some incremental hurricane-relief legislation before adjourning for Thanksgiving, as well as other political factors.

The bill is sponsored by Rep. Mike Fitzpatrick, R-Pa., who represents a competitive district and has pulled leadership out of jams. He was among the deciding votes for the Central America Free Trade Agreement, for example, despite concerns from area manufacturers. He also voted for the FY06 budget resolution conference report despite his concerns about $35 billion in required mandatory spending cuts, and Republican leaders are likely to lean on him again this week as they try to ram through a much larger $50 billion package. Fitzpatrick's chief of staff, Mike Conallen, said Fitzpatrick remains undecided on the reconciliation bill, which will contain the actual policies that possibly will slice into programs such as Medicaid and food stamps, unless GOP leaders make further changes.

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By Peter Cohn