To reauthorize the National Flood Insurance Program, and for other purposes.
Sponsors
Legislative Progress
IntroducedMr. Pallone (for himself and Mr. Higgins of Louisiana) introduced …
Summary
What This Bill Does
This bill extends the National Flood Insurance Program (NFIP) for seven years through September 2030 and makes major reforms to address affordability, improve flood mitigation, strengthen the program's finances, and protect policyholders. The NFIP provides federally-backed flood insurance to homeowners and businesses, which is often required for mortgages in flood-prone areas.
Who Benefits and How
Lower and moderate-income homeowners are the biggest winners. Households earning up to 140% of their area's median income will receive premium discounts through a new means-tested assistance program, with Congress authorizing $250 million to $600 million annually for this purpose.
All NFIP policyholders benefit from a 9% annual cap on premium increases for the next 5 years, protecting them from sudden spikes under FEMA's new Risk Rating 2.0 system. They also gain new rights including an independent appeals office for disputed claims, required disclosure of claims documents, and a 60-day claim processing deadline.
Flood-prone communities and property owners gain access to expanded mitigation programs: increased grants for property elevations and buyouts, a new mitigation loan program for homeowners, and state/tribal revolving loan funds. Properties that reduce their flood risk will see immediate premium reductions.
Who Bears the Burden and How
Write Your Own (WYO) insurance companies face new restrictions. Their compensation for administering NFIP policies will be capped, and FEMA can terminate contracts with companies or their subcontractors that have patterns of underpaying claims. They must also provide greater transparency on third-party costs.
Federal taxpayers fund the means-tested assistance program and will not receive interest payments on NFIP's approximately $20 billion debt to Treasury for five years, as interest is suspended to improve program finances.
Property sellers must now disclose flood risk information to buyers before any sale, which could affect property values in high-risk areas.
Claims adjusters and engineers face new accountability rules, including prohibitions on altering engineering reports and requirements to provide policyholders with all technical documents.
Key Provisions
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Reauthorization through 2030: Extends NFIP authority and ensures the program continues operating even during lapses in congressional appropriations
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9% premium cap: Limits annual premium increases to 9% for 5 years, with special provisions for policyholders who take mitigation actions
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Means-tested assistance: Creates a graduated discount program for households at or below 140% of area median income, funded at $250-600 million annually
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Independent appeals office: Establishes a new office where policyholders can challenge claim decisions with the potential to recover attorney fees if they prevail
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Enhanced mitigation funding: Increases coverage limits for flood-proofing, creates a mitigation loan program, authorizes state revolving loan funds, and allows 100% cost coverage for low-income policyholders
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Interest forbearance: Suspends Treasury interest charges on NFIP debt for 5 years to improve program solvency
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WYO accountability: Caps insurer compensation, requires transparency on costs, and enables contract termination for poor claims handling
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Reauthorizes the National Flood Insurance Program (NFIP) through September 30, 2030, caps premium increases, establishes means-tested assistance for lower-income policyholders, enhances flood mitigation programs, improves financial sustainability, and strengthens policyholder protections.
Policy Domains
Legislative Strategy
"Maintain NFIP solvency while addressing affordability concerns through premium caps, means-tested assistance, and enhanced mitigation funding to reduce long-term costs."
Likely Beneficiaries
- Lower and moderate-income homeowners in flood zones (means-tested premium discounts up to 140% AMI)
- All NFIP policyholders (9% annual cap on premium increases)
- Flood-prone property owners (enhanced mitigation grants and loans)
- NFIP policyholders filing claims (new appeal rights, transparency requirements, claim processing deadlines)
- State and tribal governments (new revolving loan fund program for mitigation)
Likely Burden Bearers
- Write Your Own insurance companies (compensation cap, increased accountability, potential contract termination)
- Federal taxpayers (authorized appropriations of M-M annually for means-tested assistance)
- Treasury Department (interest forbearance on NFIP debt for 5 years)
- Third-party claims contractors and adjusters (transparency requirements, prohibition on report manipulation)
- Property sellers (required flood risk disclosure before sale)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_administrator"
- → Administrator of the Federal Emergency Management Agency (FEMA)
- "write_your_own_company"
- → Private insurance company participating in the NFIP Write Your Own Program
- "the_president"
- → President of the United States (for Stafford Act mitigation grants)
- "the_administrator"
- → Administrator of the Federal Emergency Management Agency (FEMA)
- "the_secretary"
- → Secretary of the Treasury (for interest forbearance)
- "the_administrator"
- → Administrator of the Federal Emergency Management Agency (FEMA)
- "the_office"
- → Independent Office for Policyholder Appeals
- "the_administrator"
- → Administrator of the Federal Emergency Management Agency (FEMA)
Key Definitions
Terms defined in this bill
The Administrator of the Federal Emergency Management Agency
A property and casualty insurance company that has entered into an arrangement with FEMA to sell and service flood insurance policies under the NFIP
The program established under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.)
The annual premium, surcharges (except Reserve Fund assessment), and fees for a flood insurance policy under NFIP
The fund established under section 1367 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104d)
A primary residential dwelling for 1-4 families and associated personal property
A policyholder with household income not more than 140% of area median income
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology