Sponsors (3)
The bill expands access to federally backed reinsurance, private capital, and mitigation funding to speed claims payments and strengthen market capacity after disasters — but does so at the risk of increased federal/taxpayer exposure, potential moral hazard and geographic inequities, and higher costs or administrative burdens for some policyholders and governments.
Homeowners and renters across participating states gain faster, more reliable post-disaster claims payments and greater access to catastrophe coverage because State-certified insurance/reinsurance programs can tap federal reinsurance and private capital to pay valid claims more quickly.
State programs can access private capital and lower borrowing costs through federally backed reinsurance and guaranteed debt, improving insurer liquidity and overall market stability after major disasters.
Lower‑income homeowners and communities receive grants and funding for mitigation (retrofits, inspections, training), helping reduce future property damage, repair costs, and risk to life and safety.
Taxpayers face the risk of materially higher federal liabilities and open‑ended spending if program losses exceed fees, recoveries, or appropriations, because the federal backing and appropriations authority could be called to cover gaps.
Federal support may create moral hazard by encouraging continued development or rebuilding in high‑risk areas, increasing future exposure, losses, and environmental harm.
Homeowners in nonparticipating states, or those with excluded risks (notably certain flood exposures), may be left with less access to affordable reinsurance‑backed coverage, creating geographic inequities in protection.
Based on analysis of 12 sections of legislative text.
Introduced January 28, 2025 by Frederica Wilson · Last progress January 28, 2025
Creates federal tools to shore up State-backed catastrophe insurance and help homeowners recover faster after major natural disasters. It establishes a National Catastrophe Risk Consortium to track risks and disparities, a Treasury debt‑guarantee program and a federal reinsurance program to mobilize private capital and speed claims payments for eligible State programs, and a HUD mitigation grant program focused on prevention and readiness — with rules for eligibility, fees, and program oversight.