Cassidy, Wicker unveil bill to reform National Flood Insurance Program

U.S. Sens. Bill Cassidy (R-LA) and Roger Wicker (R-MS) have introduced a bipartisan measure to reauthorize the National Flood Insurance Program (NFIP) for five years and reform the program to guarantee its long-term success.

“We need to reform the NFIP to ensure it is affordable and accessible for the homeowner, accountable to the taxpayer, and sustainable for the future,” Sen. Cassidy said on Tuesday. “This bill is full of real solutions to achieve these goals.”

Sens. Cassidy and Wicker introduced the National Flood Insurance Program Reauthorization and Reform Act, S. 3128, with bill sponsor U.S. Sen. Bob Menendez (D-NJ) on Nov. 1. 

The bill would reauthorize the NFIP through Sept. 30, 2026, and ensure continuous operation even in the event of a government shutdown. The legislation focuses on flood prevention and mitigation efforts and also addresses issues with how the Federal Emergency Management Agency (FEMA) runs the program. 

Sen. Tillis’ office explained those issues include low participation rates in the program, inaccurate flood maps, unsustainable debt service costs, and contractor profiteering. 

The Senate bill would also safeguard policyholders from sudden rate hikes on insurance premiums that are expected from the implementation of FEMA’s new NFIP rating system called Risk Rating 2.0, the lawmakers said. FEMA and the Congressional Budget Office estimate that Risk Rating 2.0 will cause nearly 900,000 policyholders to drop NFIP coverage due to the premium increases. 

“The NFIP is a lifeline for many Mississippi communities that remain at risk of flooding,” Sen. Wicker said. “After an active season of floods, it is clear that the NFIP not only needs to be reauthorized but also that it needs to be reformed to make it work better for taxpayers and policyholders alike.”

Sen. Wicker offered two reforms to the NFIP that were included in this year’s reauthorization legislation. One is the Small Business Surcharge Relief Act, which would allow a small business or nonprofit with multiple insured structures to pay for mitigation projects on their property instead of NFIP surcharges. The second is the Flood Insurance Continuing Education and Training Act, which would provide continuing education for insurance agents on flood policies, the senator’s staff said.