National Flood Insurance Program Affordability Act

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.