To ensure the availability and affordability of homeowners’ insurance coverage for catastrophic events.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill creates a comprehensive federal framework to address the growing crisis in catastrophic natural disaster insurance. It establishes the National Catastrophe Risk Consortium to coordinate with states, authorizes the Treasury Department to guarantee up to $20.5 billion in debt for state catastrophe insurance programs, and creates a Federal Natural Catastrophe Reinsurance Fund to backstop state insurance programs.
Who Benefits and How
Homeowners in disaster-prone areas benefit through improved insurance availability and potentially more affordable premiums. State catastrophe insurance programs benefit from federal debt guarantees (up to $17B for non-earthquake, $3.5B for earthquake perils) and access to federal reinsurance that covers 80-90% of losses above attachment points. Insurance companies benefit from reduced catastrophic risk exposure through reinsurance availability.
Who Bears the Burden and How
Federal taxpayers bear the ultimate risk as the full faith and credit of the United States backs the debt guarantees. The Treasury Department takes on new administrative responsibilities for the debt guarantee and reinsurance programs. State programs must meet certification requirements and provide collateral for federal guarantees.
Key Provisions
- Creates National Catastrophe Risk Consortium chaired by Treasury Secretary to coordinate state insurance efforts
- Authorizes $20.5 billion in federal debt guarantees for state catastrophe insurance programs
- Establishes Federal Natural Catastrophe Reinsurance Fund covering 80-90% of losses above attachment points
- Creates HUD mitigation grant program to prevent and reduce catastrophe losses
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Establishes federal programs to ensure availability and affordability of homeowners insurance coverage for catastrophic natural disasters through a national consortium, debt guarantees, reinsurance, and mitigation grants.
Key Policy Areas
Insurance, Housing, Disaster Relief, Financial Services, Climate Adaptation
Primary Purpose
Establishes federal programs to ensure availability and affordability of homeowners insurance coverage for catastrophic natural disasters through a national consortium, debt guarantees, reinsurance, and mitigation grants.
Policy Domains
Title I - National Catastrophe Risk Consortium
Identified Gains
Contextual inference, no direct clause citation- State insurance programs
- Insurance consumers
- Low and moderate-income housing residents
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal government (Treasury)
Contextual inference, no direct clause citation
Title V - Eligible State Programs
Identified Gains
Contextual inference, no direct clause citation- State insurance programs meeting requirements
- Renters (potential future benefit)
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- State programs not meeting certification requirements
- GAO
Contextual inference, no direct clause citation
Title II - Debt Guarantee Program
Identified Gains
Contextual inference, no direct clause citation- State catastrophe insurance programs
- Homeowners in disaster-prone areas
- Bondholders of state program debt
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal taxpayers
- Treasury Department
Contextual inference, no direct clause citation
Title IV - Mitigation Grant Program
Identified Gains
Contextual inference, no direct clause citation- Homeowners
- Low and moderate-income households
- Local governments
- Construction contractors
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- HUD
- Federal taxpayers
Contextual inference, no direct clause citation
Title III - Federal Reinsurance Program
Identified Gains
Contextual inference, no direct clause citation- State catastrophe insurance programs
- Insurance companies
- Homeowners
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal taxpayers
- Treasury Department
Contextual inference, no direct clause citation
Legislative Progress
IntroducedMs. Wilson of Florida introduced the following bill; which was …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Local governments and municipalities, State catastrophe insurance programs, State catastrophe insurance programs meeting requirements
Positive-direction: Local governments and municipalities, State catastrophe insurance programs, State catastrophe insurance programs meeting requirements
Negative-direction: State programs not meeting certification requirements
HUD, Treasury Department, Treasury Department / Consortium operations
Positive-direction: Treasury Department / Consortium operations
Negative-direction: HUD, Treasury Department
Bondholders and debt investors, Bondholders of state catastrophe program debt, Fiscal agents and trustees for state programs
Homeowners in disaster-prone areas, Homeowners in disaster-prone coastal areas, Insurance consumers and policyholders
Actuarial consulting firms, Home inspection services
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "the_consortium"
- → National Catastrophe Risk Consortium
- "fiscal_agent"
- → Paying agent or trustee for eligible State program
- "the_secretary"
- → Secretary of the Treasury
- "the_secretary"
- → Secretary of the Treasury
- "the_secretary"
- → Secretary of Housing and Urban Development
- "the_secretary"
- → Secretary of the Treasury
- "the_comptroller_general"
- → Comptroller General of the United States
Note: 'The Secretary' refers to Secretary of the Treasury in Titles I, II, III, and V, but refers to Secretary of Housing and Urban Development in Title IV (Section 401)
Key Definitions
Terms defined in this bill
The National Catastrophe Risk Consortium established under this title
The duly appointed paying agent or trustee for the eligible State program
The Federal Natural Catastrophe Reinsurance Fund established within the Treasury
A State insurance or reinsurance program certified by the Secretary that is designed to improve private insurance markets and offers residential property insurance coverage for losses arising from personal residential lines of insurance
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