Bush Signs Flood Insurance Borrowing Bill

11/24/2005

Nov 22, 3:09 PM (ET)

WASHINGTON (AP) - The federal flood insurance agency, whose funds have all but dried up because of heavy hurricane claims, will be able to resume payments to flood victims under a measure signed by President Bush.

The legislation, signed by Bush late Monday, raises to $18.5 billion the amount the National Flood Insurance Program can borrow from the Treasury every year. The House and Senate each passed the measure last Friday by voice vote.

In September, Congress voted to raise the borrowing authority to $3.5 billion from $1.5 billion. But that level was quickly reached in claims from hurricanes Katrina, Rita and Wilma, and insurers were told to stop paying claims.

The Federal Emergency Management Agency, the flood insurance program’s parent agency, estimates that claims from the three hurricanes could reach $23 billion.

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The bill is H.R. 4133

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