[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5484 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 5484
To reauthorize the National Flood Insurance Program, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 18, 2025
Mr. Pallone (for himself and Mr. Higgins of Louisiana) introduced the
following bill; which was referred to the Committee on Financial
Services, and in addition to the Committees on Transportation and
Infrastructure, and Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To reauthorize the National Flood Insurance Program, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Flood Insurance Program
Reauthorization and Reform Act of 2025''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I--REAUTHORIZATION AND AFFORDABILITY
Sec. 101. Reauthorization.
Sec. 102. Cap on annual premium increases.
Sec. 103. Targeted means-tested assistance.
Sec. 104. Optional monthly installment premium payment plans.
Sec. 105. Study on business interruption coverage.
Sec. 106. Cooperative coverage fairness.
Sec. 107. Coverage limits.
Sec. 108. Study on participation rates.
Sec. 109. National Flood Insurance Act definitions regarding the Write
Your Own Program.
TITLE II--MITIGATION AND MAPPING
Sec. 201. Mitigation for high-risk properties.
Sec. 202. Increased cost of compliance coverage.
Sec. 203. Flood mitigation assistance grants.
Sec. 204. Urban mitigation opportunities.
Sec. 205. Community Rating System Regional Coordinator.
Sec. 206. Mitigation loan program.
Sec. 207. Revolving loan funds.
Sec. 208. Mapping modernization.
Sec. 209. Appeals.
Sec. 210. Levee-protected areas.
Sec. 211. Community-wide flood mitigation activities.
Sec. 212. Premium calculator.
Sec. 213. Consideration of mitigation projects in flood insurance
premium rates.
TITLE III--SOLVENCY
Sec. 301. Forbearance on NFIP interest payments.
Sec. 302. Cap on Write Your Own company compensation.
Sec. 303. Third-party service provider costs; transparency.
Sec. 304. Availability of NFIP claims data.
Sec. 305. Refusal of mitigation assistance.
Sec. 306. Multiple structure mitigation.
TITLE IV--POLICYHOLDER PROTECTION AND FAIRNESS
Sec. 401. Earth movement fix and engineer standards.
Sec. 402. Coverage of pre-FIRM condominium basements and study on
street raising.
Sec. 403. Guidance on remediation and policyholder duties.
Sec. 404. Appeal of decisions relating to flood insurance coverage.
Sec. 405. Accountability for underpayments and overpayments by Write
Your Own companies.
Sec. 406. Policyholders' right to know.
Sec. 407. Termination of certain contracts under the National Flood
Insurance Program.
Sec. 408. Deadline for claim processing.
Sec. 409. No manipulation of engineer reports.
Sec. 410. Improved training of floodplain managers, agents, and
adjusters.
Sec. 411. Flood insurance continuing education and training.
Sec. 412. Shifting of attorney fees and other expenses.
Sec. 413. DOJ defense against policyholder lawsuits.
Sec. 414. Reforming use of proof of loss forms.
Sec. 415. Agent Advisory Council.
Sec. 416. Disclosure of flood risk information prior to transfer of
property.
Sec. 417. Grace period for renewal of coverage at renewal offer rate.
SEC. 3. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Federal Emergency Management Agency.
(2) National flood insurance program.--The term ``National
Flood Insurance Program'' means the program established under
the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.).
(3) National flood mitigation fund.--The term ``National
Flood Mitigation Fund'' means the fund established under
section 1367 of the National Flood Insurance Act of 1968 (42
U.S.C. 4104d).
(4) Write your own company.--The term ``Write Your Own
Company'' has the meaning given the term in section 1370(a) of
the National Flood Insurance Act of 1968 (42 U.S.C. 4121(a)),
as amended by section 109 of this Act.
TITLE I--REAUTHORIZATION AND AFFORDABILITY
SEC. 101. REAUTHORIZATION.
(a) In General.--
(1) Financing.--Section 1309(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by
striking ``September 30, 2023'' and inserting ``September 30,
2030''.
(2) Program expiration.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking
``September 30, 2023'' and inserting ``September 30, 2030''.
(3) Retroactive effective date.--If this Act is enacted
after September 30, 2025, the amendments made by paragraphs (1)
and (2) shall take effect as if enacted on September 30, 2025.
(b) Continued Operation During Lapse of Appropriations.--Section
1310(f) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(f))
is amended--
(1) by inserting ``(1)'' after ``(f)''; and
(2) by adding at the end the following:
``(2)(A) In this paragraph, the term `period of a lapse in
appropriations from the Fund' means a period, on or after the first day
of a fiscal year, during which an appropriation Act for the fiscal year
with respect to the Fund has not been enacted and continuing
appropriations are not in effect for the fiscal year with respect to
the Fund.
``(B) Notwithstanding paragraph (1), during a period of a lapse in
appropriations from the Fund, amounts in the Fund not otherwise
appropriated shall be available to the Administrator to carry out the
flood insurance program under this title, subject to the same terms and
conditions (except with respect to the period of availability), and in
an amount not greater than the rate for operations, provided for the
Fund in the most recently enacted regular or continuing appropriation
Act.
``(C) Amounts in the Fund shall be available under subparagraph (B)
for a fiscal year during the period beginning on the first day of a
period of a lapse in appropriations from the Fund during the fiscal
year and ending on the date on which the regular appropriation Act for
the fiscal year with respect to the Fund is enacted (whether or not
such law makes amounts available from the Fund) or a law making
continuing appropriations with respect to the Fund is enacted, as the
case may be.
``(D) Expenditures and obligations made under this paragraph shall
be charged to the amounts made available from the Fund under the
regular appropriation Act, or law making continuing appropriations,
with respect to the Fund that is enacted for the applicable fiscal
year.''.
SEC. 102. CAP ON ANNUAL PREMIUM INCREASES.
(a) Definition.--In this section, the term ``covered cost''--
(1) means--
(A) the amount of an annual premium with respect to
any policy for flood insurance under the National Flood
Insurance Program;
(B) any surcharge imposed with respect to a policy
described in subparagraph (A) (other than a surcharge
imposed under section 1304(b) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4011(b))), including a
surcharge imposed under section 1308A(a) of that Act
(42 U.S.C. 4015a(a)), as amended by this Act; and
(C) a fee described in paragraph (1)(B)(iii) or (2)
of section 1307(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4014(a)); and
(2) does not include any cost associated with the purchase
of insurance under section 1304(b) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4011(b)), as amended by this
Act, including any surcharge that relates to insurance
purchased under such section 1304(b).
(b) Limitation on Increases.--
(1) Limitation.--
(A) In general.--During the 5-year period beginning
on the date of enactment of this Act, notwithstanding
section 1308(e) of the National Flood Insurance Act of
1968 (42 U.S.C. 4015(e)), as amended by this Act, and
subject to subparagraph (B), the Administrator may not,
in any year, increase the amount of any covered cost by
an amount that is more than 9 percent, as compared with
the amount of the covered cost during the previous
year, except where the increase in the covered cost
relates to an exception under paragraph (1)(C)(iii) of
such section 1308(e).
(B) Decrease of amount of deductible or increase in
amount of coverage.--In the case of a policyholder
described in section 1308(e)(1)(C)(ii) of the National
Flood Insurance Act of 1968 (42 U.S.C.
4015(e)(1)(C)(ii)), as amended by this Act, the
Administrator shall establish a process by which the
Administrator determines an increase in covered costs
for the policyholder that is--
(i) proportional to the relative change in
risk based on the action taken by the
policyholder; and
(ii) in compliance with subparagraph (A).
(2) New rating systems.--
(A) Classification.--With respect to a property,
the limitation under paragraph (1) shall remain in
effect for each year until the covered costs with
respect to the property reflect full actuarial rates,
without regard to whether, at any time until the year
in which those covered costs reflect full actuarial
rates, the property is rated or classified under the
Risk Rating 2.0 methodology (or any substantially
similar methodology).
(B) New policyholder.--If a property to which the
limitation under paragraph (1) applies is sold before
the covered costs for the property reflect full
actuarial rates determined under the Risk Rating 2.0
methodology (or any substantially similar methodology),
that limitation shall remain in effect for each year
until the year in which those full actuarial rates take
effect.
(c) Rule of Construction.--Nothing in subsection (b) may be
construed as prohibiting the Administrator from reducing, in any year,
the amount of any covered cost, as compared with the amount of the
covered cost during the previous year.
(d) Average Historical Loss Year.--Section 1308 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by striking
subsection (h) and inserting the following:
``(h) Rule of Construction.--For purposes of this section, the
calculation of an `average historical loss year' shall be computed in
accordance with generally accepted actuarial principles.''.
(e) Disclosure With Respect to the Affordability Standard.--Section
1308(j) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(j))
is amended, in the second sentence, by inserting ``and shall include in
the report the number of those exceptions as of the date on which the
Administrator submits the report and the location of each policyholder
insured under those exceptions, organized by county and State'' after
``of the Senate''.
SEC. 103. TARGETED MEANS-TESTED ASSISTANCE.
(a) Means-Tested Program.--
(1) In general.--Chapter I of the National Flood Insurance
Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting
after section 1308A (42 U.S.C. 4015a) the following:
``SEC. 1308B. FLOOD INSURANCE ASSISTANCE.
``(a) Definitions.--In this section:
``(1) Covered property.--The term `covered property'
means--
``(A) a primary residential dwelling designed for
the occupancy of from 1 to 4 families; or
``(B) personal property relating to a dwelling
described in subparagraph (A).
``(2) Eligible policyholder.--The term `eligible
policyholder' means a policyholder with a household income that
is not more than 140 percent of the area median income for the
area in which the property to which the policy applies is
located.
``(3) Housing expenses.--The term `housing expenses' means,
with respect to a household, the total amount that the
household spends in a year on--
``(A) mortgage payments or rent;
``(B) property taxes;
``(C) homeowners insurance; and
``(D) premiums for flood insurance under the
national flood insurance program.
``(4) Insurance costs.--The term `insurance costs' means,
with respect to a covered property for a year--
``(A) risk premiums and fees estimated under
section 1307 and charged under section 1308;
``(B) surcharges assessed under sections 1304 and
1308A; and
``(C) any amount established under section
1310A(c).
``(b) Authority.--Subject to the availability of appropriations,
the Administrator is authorized to carry out a means-tested program
under which the Administrator provides assistance to eligible
policyholders in the form of graduated discounts for insurance costs
with respect to covered properties.
``(c) Eligibility.--To determine eligibility for means-tested
assistance under this section, the Administrator may accept any of the
following with respect to an eligible policyholder:
``(1) Income verification from the National Directory of
New Hires established under section 453(i) of the Social
Security Act (42 U.S.C. 653(i)).
``(2) A self-certification of eligibility by the eligible
policyholder that is provided under penalty of perjury pursuant
to section 1746 of title 28, United States Code.
``(3) Any other method identified by the Administrator in
interim guidance, or a final rule, issued under subsection (e).
``(d) Discount.--The Administrator may establish graduated
discounts available to eligible policyholders under this section, which
shall be based on the following factors:
``(1) The percentage by which the household income of an
eligible policyholder is equal to, or less than, 120 percent of
the area median income for the area in which the property to
which the policy applies is located.
``(2) The housing expenses of an eligible policyholder.
``(3) The number of eligible policyholders participating in
the program established under this section.
``(4) The availability of funding.
``(5) Any other factor that the Administrator finds
reasonable and necessary to carry out the purposes of this
section.
``(e) Implementation.--
``(1) In general.--The Administrator shall issue final
rules to implement this section.
``(2) Interim guidance.--
``(A) In general.--Not later than 1 year after the
date of enactment of this section, the Administrator
shall issue interim guidance to implement this section,
which shall--
``(i) include--
``(I) a description of how the
Administrator will determine--
``(aa) eligibility for
households to participate in
the program established under
this section; and
``(bb) assistance levels
for eligible households to
which assistance is provided
under this section;
``(II) the methodology that the
Administrator will use to determine the
amount of assistance provided to
eligible households under this section;
and
``(III) any requirements to which
eligible policyholders to which
assistance is provided under this
section will be subject; and
``(ii) expire on the later of--
``(I) the date that is 84 months
after the date of enactment of this
section; or
``(II) the date on which the final
rules issued under paragraph (1) take
effect.
``(B) Rule of construction.--Nothing in
subparagraph (A) may be construed to preclude the
Administrator from amending the interim guidance issued
under that subparagraph.
``(f) Collection of Demographic Information.--The Administrator, in
order to evaluate and monitor the effectiveness of this section, and to
comply with the reporting requirements under subsection (g), may
request demographic information, and other information, with respect to
an eligible policyholder to which assistance is provided under this
section, which may include--
``(1) the income of the eligible policyholder, as compared
with the area median income for the area in which the property
to which the policy applies is located; and
``(2) demographic characteristics of the eligible
policyholder, including the race and ethnicity of the eligible
policyholder.
``(g) Reports to Congress.--
``(1) In general.--Not later than 2 years after the date of
enactment of this section, and biennially thereafter, the
Administrator shall submit to Congress a report regarding the
implement