National Flood Insurance Program Affordability Act
Congress Proposes $250 Million Plan to Lower Flood Insurance Costs for Families and Small Businesses
Legislative Progress
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.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
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
5 articlesRep. 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.
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.
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.
Source Information
Document Type
Congressional Bill
Official Title
National Flood Insurance Program Affordability Act
Data Sources
Sponsor
Cosponsors
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