U.S. Congress Approves Bill for $9.7 Billion in Flood Insurance Claims

Congress approved a bill on Friday for $9.7 billion that the US Senate proposed to assist in the payment of flood insurance claims for businesses, homeowners and renters whose properties were damaged by Hurricane Sandy in late October. This money will be used to replenish the funds for the National Flood Insurance Program (NFIP), which was anticipated to run out of cash this week and leave around 115,000 claims from Sandy unresolved, plus another 5,000 from unrelated storms. Hurricane Sandy generated the worst flooding that New York City, the Connecticut coastline and Atlantic City, NJ had ever seen, quickly depleting the funds in the NFIP.

Government emergency responses from the storm have already racked up a bill of $2 billion. Further voting is expected to take place this month for an aid package worth $51 billion. As the case with other previous natural disaster relief funds, this aid proposal did not provide offsetting spending cuts. However, lawmakers within the northeast have explained that flood insurance funds are critically needed to assist the victims of one of the worst disasters since Hurricane Katrina in 2005.

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