SENATE Key Vote Alert - Flood Insurance
KEY VOTE ALERT
"NO" on Nelson Amendment to Flood Insurance Reform and Modernization Act of 2007 (S. 4709)
The Club for Growth urges all Senators to vote "NO" on the Nelson Amendment (S. Amendment 4709) to the Flood Insurance Reform and Modernization Act of 2007 (S. 2284). This key vote will be part of our 2008 Congressional Scorecard.
This proposal would direct the Treasury Secretary to offer subsidized funding for state-run insurance programs, whether responsibly designed or not, potentially putting taxpayers on the hook for more billions of dollars in losses.
This amendment is fiscally irresponsible, and would further distort insurance markets and encourage unwise risk taking that would endanger lives and property. Perhaps the worst feature of this amendment is that it would encourage an irresponsible design of state catastrophe funds.
This reckless add-on to an already bankrupt national flood insurance program could dramatically increase spending and lead to higher taxes. It would clearly crowd out private reinsurance coverage, allowing government to increase its bureaucracy at the expense of the private sector. This amendment should be vigorously opposed.
Our Congressional Scorecard for the 110th Congress provides a comprehensive rating of how well or how poorly each member of Congress supports pro-growth, free-market policies and will be distributed to our members and to the public.
Update: The Senate did not vote on this amendment, but voted on a similar proposal to put the Federal Government in the Hurricane Insurance business.
