Preventing Environmental Hazards Act of 2025
Rep. Murphy Introduces Bill to Pay Homeowners to Move Before Shorelines Collapse
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- This bill allows the National Flood Insurance Program to pay homeowners to tear down or move their houses before they fall into the water. Currently, insurance often only pays after a house is destroyed, but this change would help people take action when a building is officially declared unsafe due to shoreline erosion.
- If a local government decides a home is too dangerous to live in because the ground is washing away, the owner can get money for two options. They can receive 100% of the home's value (up to $250,000) to demolish it, or up to 40% of the value to move the house to a safer location.
- To qualify for this help, the homeowner must have already had flood insurance for at least one year before the law passes, or for four continuous years before they make a claim. This prevents people from buying insurance only after they realize their house is about to fall in.
- There is a major catch: once a homeowner accepts this money to move or demolish their house, that specific piece of land can never get federal flood insurance or most types of disaster relief again. This is meant to ensure the government doesn't keep paying to rebuild in high-risk areas.
- The payments are strictly for the structure of the house itself and do not cover any furniture, clothes, or other items inside. The maximum amount anyone can receive under this specific erosion rule is $250,000.
Impact Analysis
Personal Impact
Renters living in shoreline homes that get condemned due to erosion would face displacement, since the bill pays property owners to demolish or relocate structures. The bill does not provide any direct compensation or relocation assistance to renters — only to the structure's owner. Renters in these situations would lose their housing without a financial cushion from this program.
State Impacts
Milestones
Referred to the House Committee on Financial Services.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
4 articlesProposed Legislation Would Protect Outer Banks Homeowners
The Preventing Environmental Hazards Act of 2025 (H.R. 3161) would allow coastal homeowners to receive financial assistance before their houses collapse into the ocean. The act authorizes the NFIP to offer partial advance payouts—up to 40 percent of a property's value, capped at $250,000.
Preventing Environmental Hazards Act a commonsense bill
Introduced by Rep. Greg Murphy, the bipartisan legislation would authorize NFIP compensation for structures condemned due to chronic erosion and allow advance payouts for demolition or relocation of up to 40% of the home's value, capped at $250,000, to prevent environmental disasters.
Stein, Causey call on Congress to help Outer Banks homeowners
Gov. Josh Stein and Commissioner Mike Causey urged Congress to pass H.R. 3161, the Preventing Environmental Hazards Act. The bill would authorize the NFIP to offer pre-collapse coverage, allowing homeowners to demolish or relocate condemned structures before they fall into the ocean.
Source Information
Document Type
Congressional Bill
Official Title
Preventing Environmental Hazards Act of 2025
Data Sources
Sponsor
Cosponsors
(4)Analysis generated by AI. Always verify with official sources.