Sponsors (2)
The bill makes flood insurance meaningfully more affordable and administratively clearer for many low- and moderate-income homeowners, small businesses, and nonprofits, but does so with limited annual funding, eligibility rules and administrative requirements that may leave some high-cost-area households, rental properties, and late-year applicants without relief and could shift costs or strains elsewhere.
Low- and moderate-income households (owners and some renters) will face much lower, more affordable flood premiums because the bill caps eligible NFIP premiums relative to area median income and expands income-based eligibility, increasing financial protection and likely NFIP participation.
Provides a dedicated federal appropriation ($250 million/year) to subsidize premiums for eligible policyholders, creating predictable funding for discounting insurance costs.
Allows monthly billing for NFIP premiums instead of a lump-sum payment, making insurance more cash-flow-friendly and immediately more affordable for many homeowners.
Assistance could be exhausted each year if demand exceeds the fixed $250M appropriation, leaving eligible households without discounts late in the fiscal year.
Means-testing, application/documentation requirements, and inclusion rules could create administrative burdens and delays that prevent some eligible low-income households from receiving timely assistance.
Tying eligibility and caps to area median income (AMI) risks excluding people in high-cost areas who still cannot afford premiums, leaving pockets of unaffordability despite the program.
Based on analysis of 4 sections of legislative text.
Creates a means-tested NFIP premium discount capping eligible policyholders' premiums at 1% of AMI, funds it at $250M/year, and requires monthly payment options.
Creates a means-tested program at FEMA to reduce National Flood Insurance Program (NFIP) premiums for eligible policyholders so that their NFIP insurance costs do not exceed 1% of area median income (AMI). The bill directs FEMA to set rules, accept applications, include small-business and nonprofit hardship metrics, report to Congress on alternative eligibility measures, and provides an annual appropriation of $250 million to carry out the program with a 95% minimum expenditure requirement. Also requires FEMA to implement monthly installment premium payments for NFIP policies within 180 days or explain to Congress why it cannot, and defines covered property, eligible policyholders, and covered insurance costs for the program.
Introduced December 30, 2025 by Robert P. Bresnahan · Last progress December 30, 2025