1st Lieutenant Andres Zermeno Post Office Building

Floor Speech

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Mr. CASSIDY. Madam President, the holiday season is upon us and should be a time filled with family, friends, and joy. But this year, it is filled with financial anxiety for many Americans. They are struggling to pay for their groceries, to heat their homes, struggling with property and casualty insurance.

But I am here to speak to those who are struggling to afford flood insurance. For over 50 years, Americans have relied on the National Flood Insurance Program, or NFIP, to be a safety net in case of disaster. The program covers 4.7 million homes, but the program has become unaffordable, unaccountable, and unsustainable. And without congressional approval, FEMA worsened this by implementing a new risk assessment program called Risk Rating 2.0.

This program dramatically increased premiums, even for those who had never flooded, and the skyrocketing prices brought on by Risk Rating 2.0 has left many Louisiana families and families in other States struggling with a financial burden.

This financial strain has caused 52,000 Louisianans to drop their coverage in just 1 year, leaving them with no way to protect their homes. About half a million Americans nationwide have dropped their coverage. And this was anticipated by this Risk Rating 2.0. When the National Flood Insurance Program put it in place, they, again, anticipated that up to 20 percent of the people would drop their coverage.

Now, during this holiday season, the financial burden of this program will only increase as Mom tries to give her kids a wonderful Christmas. That is why this month I introduced the Flood Insurance Affordability Tax Credit Act to give relief to Americans enrolled in NFIP. This legislation gives low- and middle-income households a real-time 33- percent refundable tax credit to combat the out-of-control flood insurance premium. It is not a permanent solution. We need serious reform. But cutting flood insurance bills by a third is a good place to start.

I am working on a comprehensive NFIP program that protects families from excessive premium hikes, strengthens flood mitigation efforts, simplifies the claims process by cutting redtape. While we work to fix the broken system--and believe me to say I am working hard to do this-- this tax credit provides relief for current policy holders, and it provides a path for Americans who have been forced to drop their coverage due to unaffordable premiums to reenroll at an affordable price.

It directs the Treasury Secretary to establish a program where premiums can be paid in advance. This benefits families when they need it the most, like now during the holiday season after a period of years of financial distress.

Parents shouldn't have to pick between putting food on the table, wrapping presents under the Christmas tree, or paying for flood insurance. And with a tax credit taking a third off of her flood insurance bill, the mother trying to keep this together won't have to make these sacrifices. She will be able to give her kids the merry Christmas that they deserve and protect the home they sleep in.

By the way, I am from Louisiana, but this isn't just true for families living in my State. It is true for families across the Nation. This year's hurricane season showed us flooding is possible in areas that don't typically make you think of flooding. Just think of the homes devastated by flooding in North Carolina.

Americans need relief from Risk Rating 2.0. That is not the question. And America needs to pass massive reform. However, perhaps most importantly, Americans expect us to guarantee that the National Flood Insurance Program will still be here come the new year. If nothing happens, this program expires at the end of this week.

I should correct that. For those who think that the government shutdown does not affect them, if the Government shuts down, the NFIP program will have a lapse. During that period, the program cannot sell or renew flood insurance policies or borrow from the Treasury to pay claims for existing policies. So my hope is that we can find this debt deal. I support Speaker Johnson in his attempts to do so, not the least of which is it preserves the National Flood Insurance Program for anyone that may call upon it during this intervening period.

So just frankly speaking, letting the program lapse, temporarily or long-term, should not be an option. It is often the only flood insurance option for many communities. And without it, we leave millions vulnerable. That is why I am working with the entire Louisiana delegation on legislation to reauthorize the program.

Today, I urge colleagues to support this reauthorization, giving their constituents peace of mind and protection this holiday season.

Finally, I urge colleagues to look to the future. Passing the flood insurance affordability tax credit would give relief to policyholders and reauthorizing the program are only the first steps, but they are critical steps this body must take. And unless we want to do a disservice to the American people and NFIP, we should not stop here.

When we come back in the new year, we should commit to reforming the program to make flood insurance affordable again.

Every single one of my colleagues have constituents who rely upon the NFIP. If you look to this chart, every State in the union is shaded representing the number of NFIP claims each State has. Those in dark yellow have been hit hardest and have relied on NFIP the most. They all have at least $1 billion in NFIP claims since 1978; and 44 States have had over $50 million in claims over this time period.

It is clear Americans rely on the program. But if we continue down this path, the program goes bankrupt.

So my message to my colleagues representing States that rely on the National Flood Insurance Program--which is, frankly, all of us--let's find a way forward. My team has worked on a bipartisan permanent solution that rolls back Risk Rating 2.0, makes flood insurance affordable and accountable again. I encourage my colleagues to join me in the new year to get this done.

In the meantime, let our Christmas gift to Americans enrolled in NFIP be a lower flood insurance bill and peace of mind by reauthorizing the program.

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