MENENDEZ, CASSIDY INTRODUCE BICAMERAL, BIPARTISAN BILL TO REFORM NATIONAL FLOOD INSURANCE PROGRAM

Press Release

U.S. Senators Bob Menendez (D-N.J.) and Bill Cassidy (R-La.) today announced the introduction of their bipartisan, bicameral legislation to extend the National Flood Insurance Program (NFIP) for five years, while implementing a series of sweeping reforms to address the waste, abuse and mismanagement plaguing the system. Over five million Americans depend upon the NFIP, including 220,000 New Jerseyans. Congressman Frank Pallone, Jr. (D-N.J.) sponsored the bill in the House of Representatives.

"It is time Congress stops kicking the can down the road with reauthorizations that do not address the systemic problems plaguing this program. With this legislation, we can make NFIP more sustainable, we can make flood insurance more affordable, and we can hold FEMA and its private contractors more accountable," said Sen. Menendez. "And instead of waiting for the next disaster to strike, we can invest in mitigation that prevents costly flood damage in the first place."

"We need to reform the NFIP to ensure it is affordable and accessible for the homeowner, accountable to the taxpayer, and sustainable for the future," said Dr. Cassidy. "This bill is full of real solutions to achieve these goals."

The National Flood Insurance Program Reauthorization and Reform Act tackles systemic problems with flood insurance, puts it back on solid fiscal ground, and reframes the nation's entire disaster paradigm to one that focuses more on prevention and mitigation in order to spare the high cost of rebuilding after flood disasters.

Risk Rating 2.0, the Federal Emergency Management Agency's (FEMA) new rating system, went into effect earlier this month, which is expected to raise premiums on 80% of NFIP policyholders nationwide. Around 900,000 policyholders are expected to drop their insurance because of the hikes. Last month, Sen. Menendez called on FEMA to delay the implementation of Risk Rating 2.0.

Sens. John Kennedy (R-La.), Cory Booker (D-N.J.), Cindy Hyde-Smith (R-Miss.), Marco Rubio (R-Fla.), Roger Wicker (R-Miss), Chris Van Hollen (D-Md.) and Kirsten Gillibrand (D-N.Y.) are cosponsors of the legislation.

"Roughly half-a-million Louisianians depend on flood insurance to safeguard their homes and businesses," said Sen. Kennedy. "The National Flood Insurance Program protects workers and families who need to take care of their biggest investments--their homes. We have to extend this program and protect it from political games."

"After experiencing devastating and historic flooding events over the past months, New Jerseyans know just how important flood insurance is to their long-term stability and peace of mind," said Sen. Booker. "I'm proud to join this bipartisan, bicameral legislation to reauthorize our nation's flood insurance program and make it more affordable for low-income families while at the same time ensuring that we invest in flood mitigation efforts to make communities more resilient to the growing and devastating effects of climate change."

"Flooding poses a consistent threat throughout Mississippi and fundamental problems within the National Flood Insurance Program causes unneeded economic and emotional trauma for thousands of families," said Sen. Hyde-Smith. "It's time we get serious about fixing what's wrong with the program, while implementing reforms that will benefit taxpayers and policyholders over the long term."

"Flood insurance is a necessity in Florida, and getting the National Flood Insurance Program (NFIP) on track to fiscal sustainability is critical to ensuring millions of policyholders maintain coverage," said Sen. Rubio. "In light of the Biden Administration's decision to proceed with the chaotic rollout of Risk Rating 2.0, Congress must take real action now to reform the program. This legislation would provide a five-year reauthorization and create stability for millions of policyholders across the state and nationwide."

"The NFIP is a lifeline for many Mississippi communities that remain at risk of flooding," said Sen. Wicker. "After an active season of floods, it is clear that the NFIP not only needs to be reauthorized, but also that it needs to be reformed to make it work better for taxpayers and policyholders alike."

"In this climate crisis, extreme weather events and subsequent flooding are unfortunately now the norm, causing substantial damages and devastation," said Sen. Gillibrand. "It is essential that Congress brings down the cost of flood insurance, streamlines the program in order to make it easier for families to navigate and refocuses the program on prevention and mitigation. This bill will help us lay the foundation for a stronger, more sustainable future."

Sens. Menendez and Booker and Congressman Bill Pascrell, Jr. (N.J.-09), a cosponsor of the bill in the House, outlined the legislation at a press conference in Paterson, N.J. last week on the nine year anniversary of Superstorm Sandy.