Sponsors (3)
Introduced September 18, 2025 by Frank Pallone · Last progress September 18, 2025
The bill modernizes and expands flood‑risk mapping, mitigation funding, consumer protections, and short‑term affordability for NFIP policyholders while shifting more costs and detailed risk information onto property owners and the federal balance sheet — trading greater transparency and resilience investments for higher long‑term premiums, new fiscal exposures, and added compliance/privacy/legal tradeoffs.
Millions of current and prospective NFIP policyholders (homeowners and renters) keep access to federal flood insurance through Sept. 30, 2030 because the bill extends the NFIP and FEMA's borrowing authority, avoiding an immediate lapse in coverage availability.
Lower- and moderate-income policyholders gain concrete affordability relief — capped premium increases (9%/yr for most policies for five years), means-tested discounts with appropriations, monthly payment options (with a small fee), and a one-time up-to-$500 credit for elevation certificates — reducing near-term out-of-pocket insurance costs and improving access to coverage.
Owners of high‑risk, repetitive‑loss, and flood‑prone properties, and socially vulnerable communities, receive expanded mitigation financing and technical assistance — including grants, revolving loan funds, a $1B/year National Flood Mitigation Fund, priority for disadvantaged areas, and federal support for acquisitions and pre‑disaster mitigation — lowering future flood losses and insurance claim
Many property owners (homeowners and renters) will likely face higher premiums over time as more granular, property‑level mapping and risk‑based rates—and requirements to better reflect actuarial risk—cause insurance prices to rise for properties with higher measured flood exposure.
The bill increases near‑term federal costs and fiscal exposure — through means-tested discounts, a mandated $1B/year mitigation fund, forgone Treasury interest redirected to mitigation, and authorizing use of Fund balances during lapses — which could raise budgetary pressure on taxpayers or require offsets elsewhere.
Expanded collection, sharing, and potential sale/licensing of detailed, structure‑level data (claims histories, property footprints, elevations, New Hires matches, LiDAR) raises privacy and data‑security risks and could enable private actors to target low‑risk properties, leaving higher‑risk owners bearing greater costs.
Based on analysis of 17 sections of legislative text.
Extends NFIP to 2030; caps annual NFIP premium/surcharge increases at 9% for five years; boosts mapping, mitigation, data tools; reforms claims, WYO reimbursements, and forbearance.
Extends and reforms the National Flood Insurance Program (NFIP) through September 30, 2030, limits premium and surcharge increases to no more than 9% per year for five years, and ramps up federal investment in flood mapping, elevation data, and mitigation. It changes claims and appeals rules (including a presumption that earthquake-like foundation damage is not a flood loss), caps some insurer reimbursements, creates new data and mapping systems, and directs transfers and forbearance that fund mitigation programs.