The Straits Times
www.straitstimes.com
Published on Jan 04, 2013
 

US flood program to run dry without congressional action: Fema

 
 

WASHINGTON (REUTERS) - The United States (US) flood insurance program will run out of money to pay claims for Hurricane Sandy and other disasters in coming days unless Congress lets it borrow more funds, the national emergency agency said on Thursday.

The warning from the Federal Emergency Management Agency (Fema) came a day ahead of a vote by the House of Representatives on a US$9 billion (S$11 billion) payment on storm-related support for the National Flood Insurance Program.

House Speaker John Boehner reversed course and scheduled Friday's vote after fellow Republicans from states hit hard by the Oct 29 storm slammed him for failing to bring the payment up for a vote earlier this week.

Femahas told Congress that unless its borrowing ceiling was raised, "funds available to pay claims will be exhausted sometime around the week of Jan 7, 2013", the agency said in a one-sentence statement.