Sponsor
Nydia M. Velázquez
Representative · D-NY
Representative · D-NY
This bill aims to make NFIP claims handling more transparent, faster, and better overseen—strengthening consumer disclosures and program accountability—but does so while adding administrative rules, enforcement limits, and potential costs that could raise premiums, strain agency resources, and complicate legal remedies for some policyholders.
Homeowners and renters get faster, more predictable claim decisions, appeals timelines, and quicker payments through new deadlines, an expanded advocate office, and clearer administrative appeals rules.
Homeowners, renters, and applicants receive clearer, plain‑language disclosures and better access to the technical reports and summaries FEMA relies on, improving understanding of what flood events and losses are covered.
Taxpayers, policymakers, and state/local governments gain stronger oversight and analytic information (GAO studies, fiscal analyses) to guide NFIP reforms and better project premium needs for program solvency.
Many homeowners, renters, financial institutions, and taxpayers could face higher premiums, surcharges, or program costs because of new administrative requirements, enforcement activity, pilot fees, and compliance burdens.
Mandatory administrative exhaustion and longer administrative processes (appeals, studies, deadlines) can delay legal relief and payouts, extending recovery time for claimants and slowing repairs.
Confidentiality carve-outs for committee communications, joint‑defense arrangements, and mandated releases of reports create a trade‑off between transparency and privacy/commercial risk—either reducing public visibility or exposing sensitive information.
Based on analysis of 30 sections of legislative text.
Reforms NFIP claims timelines, creates an administrative appeals process, increases WYO oversight and disclosure requirements, adds fraud penalties, and mandates GAO studies.
Makes a range of changes to the National Flood Insurance Program (NFIP) to speed and strengthen claims handling, increase transparency and oversight of Write Your Own (WYO) private insurers that issue NFIP policies, create new policyholder appeal and disclosure requirements, authorize crediting certain receipts to the National Flood Insurance Fund, require FEMA staffing for the Flood Insurance Advocate, and add criminal/administrative penalties for fraud in claims handling. It also directs GAO studies on claims adjustment practices and on coverage for flood‑related earth movement, and establishes an advisory committee and periodic interagency guidance updates to improve program governance.
Official title: To make administrative reforms to the National Flood Insurance Program to increase fairness and accuracy and protect the taxpayer from program fraud and abuse, and for other purposes.
Introduced September 18, 2025 by Nydia M. Velázquez · Last progress September 18, 2025