A bipartisan, bicameral bill proposed by U.S. Sens. Roger Wicker (R-MS) and Bill Cassidy (R-LA) would reauthorize the National Flood Insurance Program (NFIP).
“Reforming the NFIP means making it affordable again,” said Sen. Cassidy, the lead original cosponsor of the bill. “We need to ensure families are not priced out of the program.”
“The National Flood Insurance Program is a lifeline for many Mississippi communities at risk of flooding, and it is important for the program to be renewed,” Sen. Wicker said. “This legislation will reauthorize the program while incorporating much-needed reforms to help address the skyrocketing costs of premiums and make the program work better for policyholders and the taxpayer.”
Sen. Wicker and Sen. Cassidy on June 22 signed on as two of eight original cosponsors of the National Flood Insurance Program Reauthorization and Reform Act of 2023, S. 2142, which is sponsored by U.S. Sen. Robert Menendez (D-NJ).
If enacted, S. 2142 would address systemic problems with flood insurance, put the program back on solid fiscal ground, and frame the nation’s disaster paradigm to one focused more on prevention and mitigation to prevent the high cost of rebuilding after flood disasters, according to a one-page summary provided by the lawmakers.
Specifically, S. 2142 would cap annual increases at 9 percent and provide a means-tested voucher for millions of low- and middle-income homeowners and renters if their flood insurance premium becomes prohibitively expensive, the summary says.
Additionally, the bill would increase the maximum limit for Increased Cost of Compliance coverage to better reflect the costs of rebuilding and implementing mitigation projects and create new oversight measures for insurance companies and vendors.
Among other provisions, FEMA also would have more authority to terminate contractors that have a track record of abuse, says the summary.
A companion bill, the same-named H.R. 4349, was introduced on June 23 by U.S. Reps. Frank Pallone (D-NJ) and Clay Higgins (R-LA) in their chamber.
“The National Flood Insurance Program must be affordable and fair, otherwise, it just doesn’t work,” said Rep. Pallone. “This bill will strengthen the program so that homeowners in my district are protected from the devastating effects of flooding.”
The National Association of Counties and the American Policyholder Association support the bill.