Drowning flood insurance reform.

The need to overhaul the nation's federal flood insurance program was one of the many painful lessons learned from Hurricane Katrina, but special interest lobbyists can derail the most desirable of reforms. An underfunded program that too often leads to the rewarding of folly at the expense of those not living in flood-prone areas now appears likely to escape revision by a corrupt Congress.
A federal flood insurance program that takes in only $2.2 billion in fees yearly was completely inadequate for dealing with Katrina, which it is estimated will produce $25 billion in claims when all is said and done. Many homeowners in New Orleans and surrounding towns will be devastated financially unless Congress compensated them with tax money.
To avoid a repetition of this insurance disaster when the next massive hurricane hits, Republican Michael Oxley of Ohio, the chairman of the House Financial Services Committee, and Democrat Barney Frank of Massachusetts have co-sponsored legislation expanding the nation's flood zones to draw more people into it, a plan that has won support from flood experts, environmentalists and consumer groups. Real estate agents, banks and homebuilders, however, are opposed to the bill because it will "hurt the economy." In truth it will hurt them by discouraging building in flood-prone areas, as what happens after the home is built is of little concern to these groups.
Complicating matters, the White House is allowing New Orleans residents to rebuild in flood-prone areas after first indicating it would not, apparently because it doesn't want to be the villain by saying no to residents it has failed already. Sentimental desires to rebuild New Orleans are understandable, but if these same areas are washed away six days, months or years from now, taxpayers from around the country will have to pay up again, especially if there is no flood insurance reform. "You've got people living in dry areas paying for people who want to keep living in wet ones," complained Representative Candice S. Miller, a Michigan Republican, to the New York Times — and as wet as it is these days, she was speaking for Massachusetts as well.
Banks, homebuilders, and the real estate industry have powerful, well-heeled lobbyists, and lobbying "reform" aside, special interests get their way in Washington. If a flood of campaign contributions helps defeat flood insurance reform, the next major hurricane during this period of punishing storms will overwhelm the federal fund again, and taxpayers will again dig into their wallets.