Durbin Language to Protect $5 Billion of Business Investments and 150,000 Illinois Homeowners in Metro East Passes Senate With Veto-Proof Majority

Press Release

Durbin Language to Protect $5 Billion of Business Investments and 150,000 Illinois Homeowners in Metro East Passes Senate With Veto-Proof Majority

By a vote of 75-22 the US Senate today passed the domestic funding portion of the emergency supplemental bill that includes an amendment, authored by U.S. Senator Dick Durbin (D-IL), that will protect critical business investments in Metro East. The bill will now be sent to the House for a final vote before being sent to the President for his signature.

FEMA is currently creating new floodplain maps that will drastically increase the cost of mandatory flood insurance. Unfortunately, although Illinois and Missouri would be impacted by the same flood event, Illinois is scheduled to be remapped before Missouri, in turn forcing Illinois residents to purchase flood insurance and to pay higher flood insurance premiums 1-2 years before Missouri residents and businesses. Senator Durbin's provision will harmonize any changes.

"Today a veto-proof majority of the Senate decided to pass a bill that will protect $5 billion of business investments and 150,000 Illinois homeowners in Metro East," said Durbin. "The decision by FEMA to remap according to county lines instead of by watershed puts residents and businesses on the Illinois side of the river at a clear disadvantage. Businesses and low-income residents will face higher flood insurance premiums in Illinois before the final map is completed. This amendment which is similar to language passed by Congressman Costello in the House will even the playing field until the entire watershed has been remapped."

An amendment to the National Flood Insurance Reauthorization bill (H.R.3121) - authored by Representative Jerry Costello (D-IL) and passed last year in the House of Representatives - would delay the requirement to purchase flood insurance until remapping has been completed for the entire watershed. Under the legislation, residents would still be able to buy flood insurance and strongly encouraged to do so, but would not be required.

Preliminary maps for Madison, Monroe and St. Clair Counties are scheduled for release in June 2008 and final maps become effective in July 2009, at which point all homes and businesses in the newly mapped flood plain will be required to purchase flood insurance. This expansion will put business investments in Metro East - worth as much as $5 billion - in jeopardy as companies wishing to develop in the St. Louis area would face significantly higher flood insurance premiums on the Illinois side of the river.

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