Democrats, Republicans Compromise on Federal Flood Insurance

In a rare compromise, Democrats agreed to let the federal flood insurance program expire in exchange for Republican tax breaks for the wealthy.

The Senate voted 74-26 for the bill, which lets the National Flood Insurance Program expire while eliminating taxes for Republicans who own coastal homes.

It passed the House earlier, 269-161.

In a concession to Democrats who wanted a revenue provision, the bill assesses all Democrats who own property in a floodplain $1,000 a year until the NFIP’s $18 billion debt is repaid.

Senate Democratic Majority Leader Harry Reid of Nevada said his colleagues are pleased that the NFIP is being allowed to die with dignity. “There will be an appropriate ceremony in a floodplain and a farewell letter robo-signed by the President will be sent to all policyholders,” said Reid.

Senate Republican leader Mitch McConnell of Kentucky welcomed the compromise even though it did not also shut down the terrorism reinsurance, Medicare and Medicaid programs as he had hoped.

When Americans are facing a flood, tornado, hurricane, oil spill or other natural disaster, they prefer a Democrat to be in charge of paying claims and doling out the aid far more than a Republican.

In fact, a new poll finds that Americans would rather have any number of other powers in charge of paying claims – from State Farm to BP Oil – before they would want Republicans in charge.

“The public has great confidence that when it comes to disasters, Democrats know their stuff,” says pollster Less Moore.

If you and your family were victims of a natural catastrophe such as a hurricane, tornado, flood, oil spill or mining death, what official(s) would you want settling claims and deciding on assistance?