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Congress·In Committee·2 months ago

Congress Proposes $250 Million Plan to Lower Flood Insurance Costs for Families and Small Businesses

Also known as: National Flood Insurance Program Affordability Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Positive Impacts(3)
Homeowner
Helps

Homeowners earning up to 120% of area median income could get flood insurance discounts, capping premiums at 1% of local median income.

Small Business Owner
Helps

Small businesses with 100 or fewer employees can qualify for flood insurance discounts if they meet FEMA's hardship criteria.

Housing Assistance
Helps

Creates a new $250M/year program to help lower-income households afford flood insurance on their primary homes.

Key Points

  • Congress is proposing a new program to help families and small businesses afford flood insurance. The bill would have FEMA provide discounts to people who live in areas where flood insurance is required but has become too expensive.
  • To get the discount, a household's income must be 120% or less of the average income in their local area. For these families, the total cost of flood insurance would be limited to no more than 1% of the local median income.
  • The plan would also allow people to pay their insurance premiums in monthly installments. Currently, many people have to pay the full amount all at once, which can be a struggle for those living paycheck to paycheck.
  • Small businesses with 100 or fewer employees and non-profit organizations could also qualify for help. FEMA would create special rules to decide which of these groups are facing enough financial hardship to need the lower rates.
  • The government would spend $250 million each year to fund these discounts. FEMA would be required to start the program within one year of the bill being signed into law.
HousingConsumer ProtectionSmall Business

Milestones

2 milestones2 actions
Dec 30, 2025House

Referred to the House Committee on Financial Services.

Dec 30, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

FEMA must set up the discount program and issue rules

Within one year of the bill becoming law, eligible homeowners and small businesses could start applying for lower flood insurance rates.

Monthly payment option for flood insurance premiums launches

People could pay flood insurance in monthly installments instead of one big lump sum, making it easier to budget.

Related News

5 articles
Targeted News Service·about 1 month ago

Rep. Bresnahan Introduces National Flood Insurance Program Affordability Act

Rep. Robert P. Bresnahan, Jr. (R-PA) introduced H.R. 6934 to create a means-tested assistance program for NFIP policyholders. The bill targets households with incomes up to 120% of the area median, capping total insurance costs at 1% of that median income to ensure affordability.

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Route Fifty·2 months ago

NFIP Affordability Act: New Discounts for Homeowners and Small Businesses

This analysis of H.R. 6934 details the proposed shift toward means-tested discounts for flood insurance. The legislation aims to help families and small businesses in high-risk zones manage rising premiums by allowing monthly installment payments and capping costs based on local median income.

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National Mortgage Professional·25 days ago

Congress Ends Partial Shutdown, Extends NFIP Through 2026

Following a brief government shutdown, President Trump signed a spending package extending the National Flood Insurance Program through September 30, 2026. The deal provides temporary stability for the mortgage industry while lawmakers debate long-term affordability reforms and discounts.

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Source Information

Document Type

Congressional Bill

Official Title

National Flood Insurance Program Affordability Act

Bill NumberHR 6934
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Financial Services.

Sponsor

Cosponsors

(1)
D: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.