The embattled US National Flood Insurance Program (NFIP) has jumped its latest set of legislative hurdles, but the race to provide cover for those in high-risk area is still far from over.

The US Congress last week voted 406-22 for the NFIP’s continuation. The program also survived a challenge by Michigan Congresswoman Candice Miller to dismantle the program by January. She says it’s not the US Government’s constitutional responsibility “to act as an insurance agent”.

But the motion failed, with just 38 representatives voting in support. Instead, Congress voted to keep the NFIP until 2016, with a number of changes to the scheme to enable the recovery of the $US18 billion ($16.7 billion) deficit it currently faces.

Insurance, Housing and Community Opportunity Subcommittee Chairman Judy Biggert says the revisions will enable a series of reforms to be introduced to improve the program’s financial stability, reduce the burden on taxpayers and explore ways to increase private insurer participation.

She says Congress will introduce actuarially sound rates for policyholders and phase out the use of taxpayer-funded subsidies.

“This will eliminate a barrier to the development of a private flood insurance market and puts us on a path towards a responsible long-term plan that eliminates taxpayer risk,” Ms Biggert said.

“For the first time, policyholders can choose private flood insurance without the risk of lender rejection.

“Without the reforms contained in this bill, taxpayers will have limited or no access to flood insurance, and Congress will inevitably have to bail out flood disaster victims, as it did prior to 1968. We cannot allow this to happen.”

The bill still needs to be given the final tick of approval by the US Senate before the NFIP sunsets on September 30.