Congress Takes Step Toward Flood Insurance Fix

Press Release

Congress is finally moving towards providing at least some partial relief for many homeowners facing huge rate hikes for their federal flood insurance, according to U.S. Sen. Bill Nelson (D-FL) and other lawmakers.

Late last night, congressional budget negotiators unveiled a $1.1 trillion government funding bill that includes language to delay some of the premium increases triggered by recent changes to the flood insurance program. It's still unclear, however, how many homeowners would be affected.

Because legislative leaders from both political parties have agreed to the spending plan, Nelson said, a majority of lawmakers from both sides of the aisle can now be expected to support the measure this week.

"Congress, it seems, is finally hearing the pleas of some of the homeowners," Nelson said in a statement today, adding, "This is only a partial solution and there is still work to be done."

The Florida Democrat and a group of lawmakers, including Sen. Mary Landrieu (D-LA), have been advocating for months for a delay, during which time FEMA would have to study the affordability of flood insurance and re-evaluate the accuracy of new flood maps.

In a nutshell, the budget language would prevent the government from spending any money for the remainder of this fiscal year to enforce higher premiums on homeowners who would see them under new flood maps. Also, FEMA is given 60 days to provide Congress with a report on ways to keep rates more affordable.

"During the delay, the Federal Emergency Management Agency and Congress need to go back to the drawing board for a permanent fix to ensure that our neighbors and small business owners do not suffer unconscionable increases," Rep. Kathy Castor, D-Tampa, said in a release.

On a related matter, Senate Majority Leader Harry Reid (D-NV) released a statement today in support of the push to more broadly curb increasing flood insurance rates. He came out in support of separate legislation by Nelson and others that would prevent increases while FEMA re-evaluates the new flood maps and the affordability issue.

The higher rates are the result of Congress passing the Biggert-Waters Flood Insurance Reform Act of 2012 to make the nation's flood insurance program more financially sound. The program was in a downward spiral exacerbated by the damage to New Orleans from Hurricane Katrina in 2005.

Biggert-Waters eliminated certain subsidies that were being given on many homeowners' flood insurance policies. When these subsidies expired Oct. 1, residents began to see their rates increase far beyond what lawmakers envisioned.

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