NFIP Extension FAQ
Does decoupling signal a victory for budget hawks?
No, decoupling, or separating, the NFIP from the appropriations process is meant to force Congress to get serious on passing a long-term, comprehensive reauthorization, as opposed to relying on having NFIP extended on a short-term basis as part of “must pass” appropriations legislation. Since the last 5-year NFIP authorization expired on Sept. 30, 2017, there have now been six short term extensions attached to federal appropriations legislation. The rationale for decoupling is to force the issue without a “must pass” bill to fall back on.
Does this move (decoupling) mean a shift toward more risk-based rates?
No, renewing NFIP until July 31 as part of the omnibus renews the program as-is. Risk-based rates may be addressed as part of a comprehensive reauthorization proposal. Decoupling only means that reforms to the NFIP will be dealt with on its own, not in appropriations.
What happens if no middle ground on NFIP is found by July 31?
We are urging Congress to use the time between now and July 31 to provide a long-term reauthorization of this program. PIA supports a long-term reauthorization, preferably no shorter than five years, with reforms. However, if no middle ground is found in negotiations between the House and Senate for a long-term reauthorization by July 31, there is a real possibility the program could lapse right before August recess. It is certainly possible that Congress could pass a short-term extension if we find ourselves in July with no progress being made on a long-term reauthorization. However, passing a stand-alone extension is not a foregone conclusion, and so the threat of Congress recessing for August with the NFIP lapsed—in the middle of the hurricane season—is a real possibility. In fact, this year alone, while attached to “must pass” appropriations legislation, the NFIP lapsed briefly twice.
PIA will continue to advocate for Congress to pass a long-term reauthorization of the program that recognizes the essential role independent agents play in providing expert advice to consumers.