NU Online News Service, July 2, 12:03 p.m.EDT

WASHINGTON–President Obama on Friday morning signedinto law an extension of the National Flood Insurance Program untilSept. 30.

The bill is H.R. 5569, the "National Insurance Program ExtensionAct of 2010."

The bill is retroactive to June 1, when the authorization forthe program lapsed for the fourth time in several years.

The bill also reduces the borrowing authority of the FederalEmergency Management Agency, which runs the program, by $50 billionto $20.725 billion.

Action on a longer-term extension has been delayed because theprogram has a deficit nearing $20 billion, but Congress isreluctant to act to reduce it because raising rates to "marketlevel" generates severe criticism from hard-pressed homeowners.

The temporary extension bill passed by the Senate was sent overby the House on June 23.

Jessica Hanson, a spokesperson for the Property and CasualtyInsurers Association of America, said that in the wake of thepresident's signing of the bill, "We hope Congress will consider along-term solution for the flood insurance program before theAugust recess."

She said that while PCI is pleased the new extension was signedinto law today, "September will be here very soon.
This three-month extension threatens to leave communities and themarketplace vulnerable again at the end of September, at the heightof hurricane season."

Ms. Hanson added that the organization continues to supportlegislation introduced by Rep. Maxine Waters, D-Calif., thatprovides an important five-year extension and "takes a responsibleapproach to making the flood program more financially stable."