Community Flood Resilience Act

Key Points

• This bill allows local governments to use federal grant money to buy a special type of flood insurance for their entire community. This insurance is different because it pays out quickly based on specific triggers, like water reaching a certain height, rather than waiting for an inspector to look at the damage.
• Communities would be allowed to use up to 15 percent of their FEMA flood mitigation grants to pay for these insurance costs. This is designed to provide a safety net for neighborhoods where many families and small businesses do not have their own flood insurance policies.
• The goal of this program is to get recovery money into the hands of residents much faster after a storm. Because the payouts are based on simple measurements like rainfall or river levels, the money can be sent out almost immediately after a flood happens.
• Local leaders who use this money must also work to educate the public about flood risks. They are required to show how they are encouraging people to sign up for the National Flood Insurance Program and other ways to protect their homes from water damage.
• This new rule would last for five years as a test. During this time, FEMA will track whether these quick payouts actually help communities bounce back faster and if more people start taking flood risks seriously because of the program.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.