Congressional Budget Office Cost Estimate: H.R. 1309, Flood Insurance Reform Act of 2011 [open pdf - 74KB]
From the Summary: "H.R. 1309 would authorize the National Flood Insurance Program (NFIP) of the Federal Emergency Management Agency (FEMA) to enter into and renew flood insurance policies through fiscal year 2016. Under current law, that authority will expire at the end of fiscal year 2011. The legislation also would make a number of changes to the NFIP aimed at improving the financial status of the program. Under both current law and this legislation, the NFIP may borrow an additional $3 billion from the Treasury (the program's current debt stands at $17.8 billion). Assuming a small probability of a rare catastrophic event, CBO [Congressional Budget Office] expects that this additional borrowing authority will be exhausted in 2014. The changes made by this legislation would reduce the need to borrow from the Treasury--a source of direct spending--by a total of $165 million in 2013 and 2014, CBO estimates. However, because the program would continue to operate with an annual net deficit, reduced borrowing in those years would be offset by increased borrowing in 2015, resulting in no net effect on direct spending over the next 10 years. CBO also estimates that the changes made by H.R. 1309 would increase net income to the NFIP by $4.2 billion over the 2012-2021 period, improving the financial status of the program by that amount. However, we expect that additional income earned by the program would be used to fulfill existing obligations that would otherwise be delayed under current law, resulting in no net effect on direct spending."
Congressional Budget Office: http://cbo.gov/