Sponsors (3)
The bill expands state-backed catastrophe insurance, funding, and mitigation supports to speed recovery and improve resilience for homeowners and communities, but it increases federal fiscal exposure, may raise premiums or administrative costs for consumers, and could encourage continued development in high‑risk areas unless safeguards and targeted limits are strictly enforced.
Homeowners in participating States gain access to state-backed catastrophe insurance and federal reinsurance capacity, increasing availability of coverage and speeding post-disaster claims payments so families can rebuild faster.
Low‑income and other communities receive prioritized mitigation grants and homeowners can get retrofit assistance and stronger mitigation standards, reducing future damage, loss of life, and recovery costs.
Creates a dedicated Federal Natural Catastrophe Reinsurance Fund and related governance/financial transparency (published assessments, restricted investments), providing a clear, centralized funding source and transparency for catastrophe claims and program finances.
Taxpayers face substantially increased contingent liability because federal guarantees, backstops, appropriations reliance, and potential defaults could expose the federal government to large disaster losses.
By subsidizing or backstopping coverage in high‑risk areas and limiting state fiscal discipline, the bill may incentivize continued development in vulnerable coastal/flood zones and create moral hazard for states and property owners.
Actuarially sound pricing, guarantee fees, administrative costs, and repayment obligations could push higher premiums and costs onto homeowners and renters, making coverage less affordable for some, especially low‑income policyholders.
Based on analysis of 12 sections of legislative text.
Creates federal debt guarantees and a reinsurance fund to back State catastrophe insurance, plus a HUD mitigation grant program and a National Catastrophe Risk Consortium.
Introduced January 28, 2025 by Frederica Wilson · Last progress January 28, 2025
Creates a federal framework to backstop and support State-run residential catastrophe insurance programs. The bill authorizes a Treasury debt-guarantee program and a federal reinsurance program (with a reinsurance fund) to attract private capital, speed insurance claim payments after major disasters, and limit State insurer losses; it establishes a National Catastrophe Risk Consortium to study risks and advise policy; and it sets a HUD mitigation grant program to fund prevention, prioritizing lower-income areas. It also defines detailed eligibility, operational, and mitigation conditions for State insurance programs to receive guarantees or reinsurance.