Sponsors (2)
The bill expands and clarifies eligibility and payment flexibility to reduce flood-insurance costs and lapses for low/moderate-income households and some small entities, but it does so at a recurring federal cost and with implementation, fiscal, and access risks that could shift costs or leave some households and organizations unprotected.
Low- and moderate-income homeowners and renters (those at or below 120% AMI and other qualifying low-income households) will face much lower flood insurance costs because premiums can be capped (no more than 1% of area median income) or make them explicitly eligible for targeted assistance.
Taxpayers and policyholders gain more predictable support for subsidized flood insurance because Congress authorizes roughly $250 million per year to fund the program, increasing near-term access to subsidies and community recovery resources.
Homeowners (and renters with policies) can pay NFIP premiums monthly rather than as a lump sum, easing household cash flow and reducing the chance of missed payments and coverage lapses after floods.
All taxpayers face a recurring federal cost because the subsidy program is funded at about $250 million per year, increasing federal spending obligations.
Assistance depends on annual appropriations and can be exhausted during a fiscal year, meaning eligible homeowners and renters could lose promised subsidies mid-year.
Capping premiums at 1% of AMI and including statutory surcharges/Reserve Fund amounts in covered 'insurance costs' could create NFIP revenue shortfalls or larger subsidy obligations, risking program solvency or forcing future benefit reductions or cost shifts to taxpayers and policyholders.
Based on analysis of 4 sections of legislative text.
Creates a means-tested NFIP premium discount program capping eligible policyholders' chargeable premium at 1% of area median income and provides $250M/year to FEMA.
Official title: To establish a means-tested assistance program for national flood insurance program policyholders, and for other purposes.
Introduced December 30, 2025 by Robert P. Bresnahan · Last progress December 30, 2025
Creates a means-tested NFIP premium assistance program that limits eligible policyholders’ annual flood insurance chargeable premium to no more than 1% of area median income for the property area, requires FEMA to issue rules and guidance within one year, requires action on monthly premium installment payments within 180 days, and provides $250 million annually from the Treasury to FEMA to run the program.