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Introduced November 21, 2025 by Jared Moskowitz · Last progress November 21, 2025
The bill provides a federal reinsurance backstop and greater transparency that strengthen disaster recovery capacity, but it raises fiscal exposure, concentrates decision‑making authority, and creates new administrative and compliance costs that could fall on taxpayers, state regulators, insurers, and some homeowners.
Homeowners and renters in participating States gain a federal reinsurance backstop that helps cover residential property losses from covered natural disasters, reducing out‑of‑pocket recovery costs after major events.
Taxpayers, Congress, state insurance regulators, and the public get improved transparency and oversight through standardized reporting of insured losses, repayment progress, and prior‑year premium data, enabling monitoring of fiscal exposure and more informed policymaking.
The Program funds administrative costs so it can be staffed and operated, enabling investigations and audits of claims where federal payments were made and supporting program implementation.
Taxpayers face increased and potentially open‑ended federal spending because the bill authorizes appropriations of “such sums as may be necessary” without a specified cap.
Broad definitions of insurers and Secretary‑set eligibility criteria could expand Program obligations and increase taxpayer exposure to reinsurance payouts.
The Secretary’s sole authority to certify covered events concentrates significant discretion in one federal official, creating uncertainty for States and policyholders and raising governance/administrative risk.
Based on analysis of 5 sections of legislative text.
Creates a voluntary Treasury-run reinsurance program letting States receive Federal payments for insured losses above State-specific triggers, with States required to repay within 10 years.
Creates a voluntary Treasury-run Natural Disaster Risk Reinsurance Program that lets participating States receive Federal payments to cover aggregate insured losses from major natural disasters that exceed a State-specific trigger. States must adopt an approved plan, provide insurer loss and premium data, pledge their full faith and credit to repay any Federal payments within 10 years, and may opt in or later terminate participation. The Secretary of the Treasury administers the Program, consults with the Federal Insurance Office and NAIC, contracts with the National Academy of Sciences to recommend triggers, requires annual/final reporting from state regulators, and may audit claims; administrative costs are payable from the Treasury as necessary. The Program applies to covered events occurring on or after January 1, 2026, and covers specified property/casualty insurance for single- and multifamily residences (with some exclusions).