Sponsors (2)
The bill expands targeted flood-insurance relief and payment flexibility for low- and moderate-income households and some small community businesses, improving affordability and access, but it increases federal spending, adds means-testing and administrative complexity, and risks program revenue shortfalls or uneven access that could shift costs to taxpayers or lead to future coverage changes.
Homeowners and renters with incomes up to 120% of area median income become explicitly eligible and eligible households face a cap so premiums will not exceed about 1% of area median income, lowering flood insurance costs for low- and moderate-income households.
Small businesses and nonprofits that meet the Act's hardship criteria can receive tailored premium relief, reducing operating costs for community-serving entities.
NFIP policyholders (homeowners and renters) can opt for monthly premium payments instead of lump-sum billing, spreading out costs and reducing payment lapses and coverage gaps.
Taxpayers will fund an ongoing $250 million annual subsidy commitment, increasing federal spending obligations.
Because assistance is provided through annual appropriations, eligible policyholders risk losing subsidies mid‑year if funds run out.
Means-testing and application/documentation requirements (income or PITI) create administrative burdens and potential delays, complicating or slowing access to discounts for households, businesses, and nonprofits.
Based on analysis of 4 sections of legislative text.
Establishes a means-tested NFIP premium discount so eligible premiums cannot exceed 1% of area median income and funds the program with $250M annually.
Introduced December 30, 2025 by Robert P. Bresnahan · Last progress December 30, 2025
Creates a means-tested program to lower National Flood Insurance Program (NFIP) premiums for eligible policyholders so their chargeable premium cannot exceed 1% of area median income for the property area. The Federal Emergency Management Agency (FEMA) must issue regulations and guidance within one year, establish application and hardship metrics for small businesses and nonprofits, and report to Congress on alternative income measures. The Act also directs FEMA to either implement monthly premium installment payments or explain why it cannot within 180 days. Congress provides $250 million annually to FEMA to run the program, and FEMA must spend at least 95% of each year’s appropriation.