US Senate ups flood program borrowing to $18.5 bln

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-18T192215Z_01_WBT004296_RTRIDST_0_CONGRESS-HURRICANES-INSURANCE-URGENT.XML

WASHINGTON, Nov 18 (Reuters) - The U.S. Senate on Friday boosted the borrowing authority of the government's flood insurance program to $18.5 billion from $3.5 billion to cover claims from Hurricane Katrina and other flood disasters.

The House of Representatives earlier this week approved raising the borrowing authority to $8.5 billion, while a House committee voted to go even further and raise the authority to $22 billion. Both chambers will have to approve the same amount before the change becomes law.

Run by the Federal Emergency Management Agency, the National Flood Insurance Program can borrow from the U.S. Treasury to cover claims not covered by its premiums.

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