Senators, House Members Unveil Bipartisan Flood Insurance Legislation
This legislation would cap premium increases at 9% each year, half of what the House bill calls for.
A bipartisan group of Senate and House members Tuesday unveiled legislation that would reauthorize the National Flood Insurance program and cap premium increases each year.
Spearheaded by Sen. Robert Menendez (D-N J.), the bill also would cap interest rate payments on the massive debt that the program faces. Cosponsors of the legislation include members of the New Jersey congressional delegation and Louisiana’s two senators.
Members from the Garden State pointed out that homeowners suffered from NFIP inefficiencies following Superstorm Sandy, while Louisiana’s senators cited horror stories from flood there.
“We all have horror stories to tell,” Menendez said. He pointed out that House Financial Services Chairwoman Maxine Waters (D-Calif.) has proposed her own bill, but Menendez said her bill “falls short” in several areas.
Menendez said his legislation would cap premium increases at 9% each year, half of what the House bill calls for.
“Continually hiking premiums is not a path toward sustainability,” he said.
The bill also would freeze the annual $400 million in interest payments the federal government must pay on the debt the program faces.
He added that the bill increases oversight in several important areas.
The NFIP program has run in the red for years. In October 2017, Congress cancelled $16 billion the program owed the federal government, with a remaining debt being serviced through revenues from premiums.
Under federal law, financial institutions recently announced they will begin accepting private flood insurance in an effort to lighten the federal load.
The legislation authorizing the program expired in October 2017. Since then, Congress has been forced to enact 12 short-term extensions for the program, as lawmakers failed in their attempts to extend the program and make changes needed to keep the program operating on a longer-term basis.
House Energy and Commerce Chairman Frank Pallone (D-N.J.) said he has been working with Waters on flood insurance issues. He said, however, that she said she would lose Republican support for her bill if she added some of the Senate’s provisions.
Credit union trade groups have urged Congress to enact long-term NFIP legislation to help remove the uncertainty facing the program.
The latest short-term reauthorization expires on Sept. 30 and Sen. John Kennedy (R-La.) asked his colleagues to enact comprehensive legislation.
“Do something,” he implored them. “Please get off your ice cold, lazy butts.”