Cassidy leads colleagues in proposing National Flood Insurance Program reforms

The National Flood Insurance Program (NFIP) would be reformed and extended under a bipartisan, bicameral proposal offered by U.S. Sen. Bill Cassidy (R-LA).

“This legislation ensures the NFIP works for the homeowners that depend on it,” Sen. Cassidy said. “The reforms in this bill are critical to any reauthorization effort to make the program sustainable and prevent families from being hit with drastic premium increases.”

Sen. Cassidy joined U.S. Sens. John Kennedy (R-LA) and Cory Booker (D-NJ), among others, on July 16 to unveil the National Flood Insurance Program Reauthorization and Reform Act of 2019 during a 40-minute press conference, which also included several Democrats from the U.S. House of Representatives who also released a version of the bill in their chamber.

Sen. Cassidy and his colleagues released a six-page summary of the proposed bill, which would extend the NFIP for five years and institute numerous reforms designed to address the waste, abuse and mismanagement of a program that some 5 million Americans utilize. The NFIP is set to expire on Sept. 30.

For instance, the bill would improve the accountability, affordability and sustainability of the NFIP, which is administered by the Federal Emergency Management Agency (FEMA).

Additionally, the bill would emphasize prevention and mitigation efforts to avoid costly flood-related damages by, among other provisions, freezing interest payments on the NFIP debt and reinvesting the savings in such efforts.

If enacted, the measure also would protect policyholders from high premiums by capping annual increases at 9 percent; would provide a voucher for low- and middle-income homeowners and renters if their flood insurance premium causes their housing costs to exceed 30 percent of their Adjusted Gross Income; and would authorize funding for Light Detection and Ranging, or LiDAR, technology to improve the mapping of flood risks across the country, among other provisions listed in the summary.