Congressional Bailout Allows FloodInsurance Payouts To Resume
WASHINGTON - (11/21/05) -- The Federal Emergency ManagementAgency will be able to resume paying claims from the National FloodInsurance Program after Congress approved new funding--again--forthe NFIP on Friday. Both the House and Senate approved a bill thatwill increase funding for the near-broke program to $18.5 billion,just three weeks after raising the funding to $3.5 billion. FEMA,which administers the flood program, stopped paying claims forvictims of hurricanes Katrina, Rita and Wilma last week because itran short of money. But Congress is expected to have to increasefunding yet again in the coming months as claims for the onlynational provider of flood insurance are expected to surge to asmuch as $30 billion.