Sponsor
Jared Moskowitz
Representative · D-FL
The bill creates a federal reinsurance backstop and centralized oversight to stabilize insurance markets and speed disaster payouts, but it shifts repayment and fiscal risk to state taxpayers, raises federal borrowing and administrative burdens, and creates potential privacy, coverage, and governance trade-offs.
Homeowners and renters in States that join get a federal reinsurance backstop that reduces insurer insolvency risk and can speed post-disaster payouts.
State governments gain rapid-access federal funding and clearer participation rules so they can stabilize insurance markets after major disasters and participate with predictable administrative roles.
Centralized oversight, audit authority, and compiled insurer premium-rate data improve transparency for Congress, regulators, and the public and help reduce improper payments and fraud.
Participating State taxpayers must pledge full faith and credit and repay federal payments (with interest) within about 10 years, creating material budgetary and potential tax pressures at the state level.
The Program increases federal borrowing and authorizes Treasury funding mechanisms (including broad 'as necessary' use of funds), raising federal fiscal exposure and reducing statutory appropriation controls.
States and insurers face new, recurring administrative and reporting requirements (claims, loss, premium-rate data, repayment progress), imposing operational costs and staffing burdens.
Based on analysis of 5 sections of legislative text.
Establishes a voluntary Treasury-run reinsurance program to pay States for insured residential losses above state triggers for covered disasters, with States required to repay over 10 years.
Representative · D-FL
Creates a voluntary Natural Disaster Risk Reinsurance Program at the Department of the Treasury to make federal payments to participating States to cover industry-wide insured losses above a State-specific trigger for covered natural disasters occurring on or after January 1, 2026. States must adopt an approved plan that ensures insurers pay claims up to the State trigger, report losses and premiums, and distribute federal payments to insurers; States pledge to repay federal payments within 10 years. The Treasury Secretary administers and implements the Program, may audit and investigate loss claims, requires annual and final reporting from State insurance regulators, compiles insurer premium data, consults the NAIC, and may hire staff and contract for services; the bill funds reasonable administrative costs from Treasury resources as needed.
Official title: To establish a Natural Disaster Risk Reinsurance Program, and for other purposes.
Introduced November 21, 2025 by Jared Moskowitz · Last progress November 21, 2025